OpenAI may delay its IPO until next year, Wall Street Journal reports

Some OpenAI investors have reportedly hedged with Anthropic, which has begun meeting potential investors for a fall IPO amid stronger revenue growth and valuation momentum.

Summary

OpenAI may postpone its initial public offering until next year, The Wall Street Journal reported, as some major investors privately question the startup’s cash burn relative to its growth. The latest report adds that some investors have hedged by backing Anthropic, which has recently surpassed OpenAI in revenue growth and valuation and has begun meeting potential investors for a fall IPO, sharpening the competitive contrast between two of the most closely watched artificial intelligence companies.

Terms & Concepts
  • IPO: A company's first public sale of shares.
  • cash burn: The rate at which a company spends money, typically before it consistently generates enough cash to cover costs.