OpenAI confidentially files for IPO with expected valuation exceeding $1 trillion, joining SpaceX and Anthropic in a wave of mega-cap public offerings.

OpenAI submitted a confidential S-1 filing with the SEC and preemptively announced it, stating 'We expect it to leak.' The company said it has not decided on timing and that going public may take a while because some goals are 'likely easier as a private company.'

OpenAI's expected valuation exceeds $1 trillion, compared with its most recent valuation of $852 billion. This would make it the third $1 trillion-plus IPO expected this year, following SpaceX ($1.78 trillion) and Anthropic (last valued at $965 billion).

Investors are expressing concern about absorbing three $1 trillion-plus IPOs simultaneously. Bank of America's Savita Subramanian noted that seven out of ten bear-market red flags have been triggered and forecasts 6% downside from the S&P 500's year-end target of 7100. AllianceBernstein's Inigo Fraser Jenkins warned of 'increased circularity' in AI investments, noting that roughly one-third of tech sector earnings derive from cross-holdings in companies such as Alphabet's stake in Anthropic.