OpenAI, one of the largest AI companies in the world, is reportedly gearing up for its much-anticipated IPO. Just days after CEO Sam Altman emerged victorious in a legal battle against Elon Musk, the company is set to file its draft IPO prospectus as early as this Friday, according to CNBC.
With a valuation exceeding $850 billion, OpenAI is working with top financial firms Goldman Sachs and Morgan Stanley to make its public debut a success. However, the big question on everyone’s mind is what the company’s financials look like.
Reports suggest that OpenAI’s annual recurring revenue surpassed $25 billion earlier this year. While this figure may seem impressive, the company is currently operating at a loss. The Information projected that OpenAI could potentially lose up to $14 billion by 2026, with losses reaching $44 billion by 2028.
Despite OpenAI’s ambitious goal of achieving $100 billion in annual sales by 2029, the company faces stiff competition in the AI industry and rising energy costs that may hinder its growth. In contrast, Anthropic, the maker of ChatGPT competitor Claude, has seen significant financial success. The company recently announced an estimated annualized run-rate revenue of $30 billion, up from $9 billion in 2025. Anthropic is projected to stop burning cash by 2027 and become cash-flow-positive by 2028, a feat that OpenAI has yet to achieve.
While OpenAI claims to be the leading AI company, the market is closely watching the numbers. Anthropic’s financial performance is currently outshining OpenAI’s, raising questions about the latter’s dominance in the industry.
As OpenAI prepares to go public, investors and industry analysts will be closely monitoring its financial health and market performance. The competition in the AI sector is fierce, and only time will tell if OpenAI can maintain its position as a top player in the industry.
