OpenAI Set to Go Public: A Risky Bet for AI

OpenAI Plans Bold IPO

OpenAI, the company behind ChatGPT, has recently confirmed that it has filed a confidential application with the U.S. SEC for a potential initial public offering (IPO). This announcement comes shortly after a similar move by Anthropic, another major player in the artificial intelligence sector. Although the timeline for this operation has not yet been specified, it could transform the landscape of AI financing as companies seek to raise billions to support their growth.

OpenAI's private valuation has already reached $852 billion, but the company still needs to convince financial markets of the viability of its business model. The profitability of generative AI, while promising, remains to be proven.

Reasons Behind OpenAI's Timing

The filing of the S-1 form with the SEC marks the first step toward an IPO. OpenAI has clarified that no final decision has been made regarding the timing or terms of this operation. The company acknowledges that certain strategic projects might be more easily accomplished while remaining private.

Anthropic, which recently filed a similar application, and OpenAI are looking to finance their expansion and computing infrastructure. Public markets are becoming an increasingly crucial source of capital for these companies, leaders in the field of large language models.

In secondary markets, Anthropic seems to be gaining momentum, with a valuation nearing $1 trillion, compared to approximately $880 billion for OpenAI in the spring. However, OpenAI benefits from global recognition, particularly due to ChatGPT, which claims around 900 million active weekly users.

Financial and Strategic Challenges for OpenAI

According to the Wall Street Journal, OpenAI has not met certain internal revenue and user acquisition targets. Expenses related to data centers and model training continue to grow rapidly.

Last March, OpenAI raised $122 billion in a historic funding round but still anticipates massive investments in AI research. Projections indicate losses could reach $85 billion by 2028, despite revenue growth.

This situation highlights a structural challenge for the industry: the costs of developing and operating next-generation models often rise faster than revenues. For public investors, the crucial question will be whether these companies can turn their technological lead into sustainable profitability.

Moreover, OpenAI faces governance and compliance risks. The episode involving the firing and subsequent return of Sam Altman in 2023 raises questions about the company's internal workings. Legal proceedings related to the use of OpenAI's technologies are also ongoing.

Thus, OpenAI's IPO could become a major test for the generative AI sector, as public markets will need to decide the extent of their support for an industry with immense potential but a business model still under construction.