The battle for dominance in artificial intelligence is increasingly shifting from technology to capital markets, with OpenAI and Anthropic emerging as the frontrunners in what could become the biggest IPO race in history.
OpenAI's Record-Breaking IPO Plans
According to a recent Deutsche Bank Research Institute report, OpenAI is preparing to launch a record-breaking public offering that could raise as much as USD 60 billion and value the ChatGPT maker at more than USD 1 trillion. However, the company now faces mounting pressure from rival Anthropic, which has overtaken OpenAI in sales and is moving aggressively toward a public listing of its own.
Anthropic Files for IPO
Anthropic has filed a confidential draft registration statement with US regulators for a proposed initial public offering on Monday, positioning itself to capitalize on surging investor demand for pure-play AI companies. In a latest funding round, the Claude maker raised USD 65 billion led by Altimeter Capital, Dragoneer, Greenoaks and Sequoia Capital, valuing the company at USD 965 billion post-money, surpassing OpenAI.
Sales Race Heats Up
The Deutsche Bank report noted that "OpenAI is in a race with Anthropic, which overtook it in sales last month and is on track to generate USD 40 billion in annual recurring revenue this month." In comparison, OpenAI is expected to reach USD 30 billion in annualised revenue this month. The report also noted that Anthropic "may be looking to raise more than USD 60 billion in its own IPO this year."
Market Implications and Investor Caution
Despite the growing challenge, OpenAI remains the face of the generative AI revolution. Deutsche Bank said the company appears determined to "strike while the iron is hot," citing reports that OpenAI plans to make a confidential filing with regulators and could go public as early as September. If successful, the offering would surpass every IPO on record. The report said a USD 60 billion share sale would be "the biggest IPO ever, twice as big as Saudi Aramco's IPO," which raised USD 25.6 billion in 2019.
Yet investors may remain cautious. Deutsche Bank observed that "it has yet to be seen how public markets will value OpenAI and its peers once they open up their financial statements to scrutiny and explain the still little-understood economics of their business models." The report also highlighted broader enthusiasm for AI investments, noting that investors currently have limited opportunities for direct exposure to foundation-model companies. With both OpenAI and Anthropic preparing for landmark listings, the coming months could determine which company ultimately emerges as Wall Street's preferred AI champion.
