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OpenAI IPO planned for September: Wall Street Journal

OpenAI eyes September IPO after Musk lawsuit dismissed, shares surge above $900 billion valuation.

  • OpenAI is reportedly targeting a September IPO with Goldman Sachs and Morgan Stanley as underwriters.
  • Elon Musk’s $150 billion lawsuit against the AI company was dismissed this week, removing a legal hurdle.
  • Secondary market shares value the firm above $900 billion, with prices up 120% over the last year.
  • The company has issued warnings that unauthorized tokenized versions of its stock could be worthless.

OpenAI is accelerating plans for a September initial public offering, according to reports, with paperwork potentially being filed as soon as this Friday. This move follows the dismissal of Elon Musk’s high-profile lawsuit on Monday, which had challenged the company’s financial structure.

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The AI firm has enlisted Goldman Sachs and Morgan Stanley to underwrite the blockbuster offering. This development comes after the company raised approximately $180 billion in funding at an $852 billion valuation.

Consequently, shares on the private secondary market have surged, now trading at $735 on Forge Markets. This price reflects a 120% increase over the past year and implies a staggering $906 billion valuation.

Meanwhile, the crypto market has felt turbulence from unauthorized AI stock tokenizations. Both OpenAI and Anthropic have warned that such tokenized shares “could be worthless” because all equity is subject to strict transfer restrictions.

The failed lawsuit was a key obstacle for CEO Sam Altman’s public market ambitions. Musk, who co-founded the company in 2015, argued the firm strayed from its original nonprofit mission.

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However, jurors ruled against Musk on a technicality regarding the timing of his filing. Musk said on X he plans to appeal, stating, “I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive.”

Prediction markets now heavily favor OpenAI going public before its rival Anthropic. This sentiment shifted immediately following the IPO report.

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