OpenAI files IPO paperwork

OpenAI said Monday it has confidentially filed draft IPO paperwork, giving itself the option to tap public markets — even as the company says its focus remains on building new AI products rather than preparing for a listing.

Why it matters: The race is on between Anthropic and OpenAI to go public and tap investors for tens of billions of dollars.

What they're saying: OpenAI has not decided on timing, adding that "it may be a while because there are things we want to do that are likely easier as a private company."

• The company said the filing gives it flexibility.
• The AI lab is working toward a tender offer that would give investors some liquidity while it remains private.
• OpenAI is working with Goldman Sachs and Morgan Stanley on a listing that could come as soon as this fall, Bloomberg reported.

Zoom out: This comes exactly one week after OpenAI's biggest competitor, Anthropic, filed IPO paperwork, and just days before SpaceX is expected to go public.

• The three companies have valuations around $1 trillion, giving them all the potential to be among the largest IPOs in history.

Friction point: AI excitement may be soaring, but investor dollars are finite. As more companies head to the public markets, competition for capital is only getting tougher.

• OpenAI could face particular investor scrutiny: The Wall Street Journal reported the AI lab missed internal revenue targets and that CEO Sam Altman and CFO Sarah Friar disagreed over the IPO timeline.

Zoom in: The timing of OpenAI's SEC review could affect what Anthropic ends up disclosing, or vice versa, PitchBook's Harrison Rolfes told Axios.

• If OpenAI is still early in the review process and Anthropic releases extensive information first, public and regulatory attention may shift toward Anthropic.
• That could give OpenAI an advantage by letting it observe Anthropic's disclosures and adjust its own approach accordingly, ultimately working in OpenAI's favor.

What we're watching: Whether Anthropic or OpenAI decides it has more to gain by going first.

The bottom line: The AI race is beyond model advancements now.

• It's also a race to Wall Street.