OpenAI prepares confidential IPO filing: source

OpenAI is preparing to confidentially file a draft IPO prospectus with the US Securities and Exchange Commission as soon as May 22.

The move could set up one of the biggest market debuts after private investors valued the company at more than US$850 billion.

OpenAI is working with Goldman Sachs and Morgan Stanley on the filing, which could come in the next few days or weeks.

OpenAI CFO Sarah Friar said last month that the company regularly reviews strategic options.

She added that it made sense for a company of OpenAI’s size to operate like a public company but did not give a listing timeline.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Any public filing would need to clearly explain OpenAI’s partnership with Microsoft, which has rights to OpenAI intellectual property for use in Microsoft products 1.
The deal gives Microsoft unusual control. The OpenAI application programming interface (API) is exclusive to Azure, Microsoft’s cloud platform, runs on Azure, and is sold through the Azure OpenAI Service. Microsoft also has a right of first refusal on OpenAI’s new computing capacity needs 1.
That reliance is harder to judge because Microsoft is also building its own AI models, including MAI-1. Its Azure AI platform also offers more than 11,000 models from partners, including OpenAI rivals Meta, Mistral, and xAI 1.
Microsoft’s fiscal 2025 statements also say that “Other, net” within other income (expense) mainly includes recognized losses on equity method investments, including OpenAI. That matters for anyone weighing an IPO above US$850 billion 1.

An OpenAI IPO could set a new public market yardstick, with a price-to-sales ratio well above Microsoft, which trades at about 9.7 times sales 2.
Public funding matters in the fight over AI infrastructure. Tech companies issued a record US$141 billion in corporate debt in 2025 to pay for data centers and graphics processing units (GPUs) 2.
Meta nearly doubled its 2026 capital spending guidance from 2024 levels, while Oracle plans to borrow US$25 billion a year for four years 2.
The shift could also add pressure on xAI, Elon Musk’s AI startup. Kavout says xAI is repaying US$3 billion in high-yield bonds early ahead of a possible listing tied to SpaceX, Musk’s rocket and satellite company, though the provided sources do not confirm that detail elsewhere 2.