OpenAI confidentially files IPO papers, expects documents to leak; valuation targeted above $1 trillion

OpenAI confidentially submitted S-1 IPO papers to the SEC and publicly announced this move, stating "we expect it to leak." The company has not decided on timing yet and says there are things it wants to do that may be easier as a private company.

OpenAI's valuation is expected to be greater than $1 trillion, making it potentially the third $1 trillion-plus IPO expected this year alongside SpaceX ($1.78 trillion) and Anthropic (last valued at $965 billion).

Some investors are skeptical of absorbing three mega-cap IPOs simultaneously. One asset manager with $1 billion-plus under management said he wouldn't buy into them for six months. AllianceBernstein warns of "increased circularity" in AI funding, noting roughly one-third of tech sector earnings derive from cross-holdings in companies like Anthropic (held by Alphabet).