Key Takeaways
- OpenAI is now targeting 2027 for its IPO, shifting from earlier plans for a fall 2025 listing
- Anthropic may go public as early as October 2025, beating OpenAI to market
- Recent tech stock volatility prompted OpenAI to reconsider its timeline
OpenAI is pushing its initial public offering to 2027, according to sources familiar with the company's plans. The delay means rival Anthropic could beat the ChatGPT maker to Wall Street, with a potential listing as early as October this year.
Both companies have already filed confidentially with the SEC. But recent volatility in tech stocks spooked OpenAI's leadership, prompting a rethink. The company had previously targeted a fall 2025 listing.
Why did OpenAI push back its IPO?
OpenAI's own statement hinted at the reasoning. When announcing its confidential filing, the company said it hadn't decided on timing and noted that "there are things we want to do that are likely easier as a private company." Translation: going public adds scrutiny, quarterly pressures, and governance complexity that could slow ambitious AI development.
Tech stock swings played a direct role. Sources told Bloomberg that market volatility influenced the decision. With AI valuations under increasing scrutiny, OpenAI apparently decided waiting beats rushing into a turbulent market.
The company is working with Goldman Sachs and Morgan Stanley on its eventual listing. Both banks saw their shares drop 4.9% and 4.2% respectively after news of the revised timeline broke. SoftBank, a major OpenAI backer, and Oracle, its data center partner, also fell.
Anthropic could list in October
Anthropic filed its confidential IPO paperwork shortly before OpenAI did. The Claude maker is now considering going public as soon as October, Bloomberg reported. That would make it the first major generative AI company to reach public markets.
Once considered an underdog, Anthropic has closed the gap. Revenue has surged this year, driven by enterprise adoption of its Claude models for code generation and debugging. The company raised $4 billion from Amazon and reached an estimated $60 billion valuation.
For context: OpenAI raised $122 billion earlier this year at a valuation of $852 billion (including the new capital). Both companies are burning through cash to build AI infrastructure, and public markets represent the next funding frontier.
What this means for the AI funding race
Private funding can only stretch so far. OpenAI has raised over $13 billion from Microsoft alone. Anthropic has pulled in $4 billion from Amazon. But the compute costs for training next-generation models keep climbing. Public markets offer deeper pockets and more liquidity for the massive infrastructure investments both companies need.
Sam Altman has been candid about this. "The path to AGI requires a lot more capital than we'd originally envisioned," he said in 2024. OpenAI has also been restructuring its unusual capped-profit model into something closer to a traditional for-profit company, a necessary step before going public.
The question is whether public market investors will pay the valuations these companies command. At $852 billion, OpenAI would rank among the most valuable companies on Earth. Anthropic's $60 billion valuation assumes continued explosive growth. Neither has proven sustainable profitability.
Plans could still change
OpenAI's timeline remains fluid. Sources emphasized that deliberations are ongoing and details could shift. The company itself acknowledged "a complicated set of tradeoffs" in its filing announcement. If market conditions improve or competitive pressure intensifies, OpenAI could accelerate.
For now, Anthropic has the inside track to become the first pure-play generative AI company on public markets. That distinction carries weight: the first listing will set benchmarks for how Wall Street values AI companies with massive revenue growth but equally massive infrastructure costs.
Logicity's Take
OpenAI's delay is tactical, not defensive. Going public in 2027 lets the company complete its corporate restructuring, build more revenue history, and potentially list after the AI hype cycle either cools or proves durable. For enterprise buyers evaluating OpenAI vs. Anthropic vs. Google's Gemini or open-source alternatives like Llama 3, the IPO timing matters less than product roadmaps. But watch Anthropic's October listing closely. Its valuation will signal how public markets actually price AI companies, not just how private investors hope they'll be priced.
Frequently Asked Questions
When is OpenAI going public?
OpenAI is now targeting 2027 for its IPO, according to sources familiar with the company's plans. The company previously considered a fall 2025 listing but delayed due to tech stock volatility.
Will Anthropic go public before OpenAI?
Yes, Anthropic is expected to list first. The company is considering an IPO as early as October 2025, which would make it the first major generative AI company on public markets.
What is OpenAI's current valuation?
OpenAI was valued at $852 billion in its most recent funding round earlier this year, which raised $122 billion from investors.
Who are OpenAI's IPO underwriters?
OpenAI is working with Goldman Sachs and Morgan Stanley on its potential listing.
Why is OpenAI delaying its IPO?
OpenAI cited "things we want to do that are likely easier as a private company" and sources said tech stock volatility influenced the decision to push back the timeline.
Earlier coverage of the market reaction to OpenAI's IPO timing shift
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Source: Tech-Economic Times / ET
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
