OpenAI has clearly placed an initial public offering on its formal agenda, with a target time window set for 2027, and has not ruled out the possibility of an earlier timeline should business acceleration warrant it. Although the company demonstrates strong performance in revenue growth and user scale, with an annualized revenue run rate having surpassed $40 billion, it has not yet achieved profitability, while simultaneously facing more rapid growth trajectories from competitors such as Anthropic and the pressure of a potential earlier listing.
OpenAI Chief Financial Officer Sarah Friar, during a recent all-hands meeting with employees, internally communicated the company’s listing plan for the first time. She stated that this leader in the artificial intelligence field “will become a public company in 2027,” adding that if current business growth continues to accelerate, the timing of its initial public offering (IPO) could be moved up further. According to sources familiar with the matter, Friar framed the IPO as a milestone in the company’s development journey rather than a final destination, and underscored its significance as a new round of financing opportunity. She noted that the company had raised $122 billion in funding this past March, which provides the team with ample financial flexibility.
In fact, OpenAI confidentially submitted its IPO prospectus to the U.S. Securities and Exchange Commission this past June, at which time the company confirmed the move in a statement, while also noting that the listing timeline had not yet been finalized and that certain matters were more expedient to advance while the company remained privately held. As the listing process moves forward, pressures from external competition have become increasingly apparent. Its primary rival, Anthropic, is also preparing for an IPO and may even publicly release its offering documents within the next few weeks, potentially debuting on the public market as early as September. In response, Friar reassured employees during the meeting that there is no need to worry about competitors going first, as the company has its own established rhythm. It is understood that Anthropic has already confidentially filed documents with regulators and has conducted preliminary discussions with potential investors.
On the financial performance front, OpenAI’s revenue run rate grew 35% quarter to date, with enterprise revenue run rate up 50%, and weekly active users for its AI coding and productivity products have reached 20 million. Previous reports indicated that the company posted $6.7 billion in second-quarter revenue, representing 18% sequential growth, and that its annualized revenue run rate recently exceeded $40 billion, though the company as a whole has yet to turn a profit. By comparison, Anthropic’s growth has been even more rapid, with its annualized revenue run rate reaching $65 billion as of the end of July, a sevenfold increase from a year earlier, and preliminary second-quarter revenue of approximately $11.5 billion, with the company having achieved a modest operating profit.
As the IPO draws nearer, OpenAI faces pressure to justify its valuation of up to $852 billion, with investor expectations for more detailed financial disclosures, alongside factors such as the rapid ascent of competitors, the proliferation of low-cost open-source models, and post-listing stock price volatility at SpaceX (SPCX), all combining to intensify market concerns. Regarding the aforementioned financial figures, OpenAI declined to comment, and Anthropic did not immediately respond.
