Alex Kantrowitz said OpenAI will be pressed to launch an initial public offering before its competitor Anthropic [1].
The timing of these public offerings could signal a shift in the AI industry's financial structure. As these companies scale their operations and infrastructure costs, the transition from private funding to public markets will determine how they maintain their competitive edge.
Kantrowitz, a CNBC contributor and the founder of Big Technology, said these insights during an appearance on the "Closing Bell Overtime" program [1]. He discussed the dynamics of the AI IPO race, focusing on the pressures facing the creators of ChatGPT.
While both OpenAI and Anthropic have attracted billions in private investment, the move toward a public listing involves different regulatory and financial hurdles. Kantrowitz said the momentum and scale of OpenAI may accelerate its timeline compared to Anthropic [1].
The race to go public is often driven by the need for liquidity for early investors and employees. It also provides a mechanism for companies to raise the massive amounts of capital required to train next-generation large language models.
Anthropic has positioned itself as a safety-focused alternative to OpenAI, but the financial markets often prioritize growth and market penetration. This distinction may influence which company the market is more eager to embrace first [1].
OpenAI has undergone several leadership and structural changes in recent years. These internal shifts, combined with external investor pressure, may create the necessary conditions for a public filing [1].
“OpenAI will be pressed to go public before Anthropic”
An IPO for OpenAI would mark a pivotal moment for the generative AI sector, potentially setting the valuation benchmark for all other AI labs. If OpenAI enters the public market first, it may secure a dominant capital advantage that forces competitors like Anthropic to either find massive private backers or accelerate their own public offerings to keep pace.
