United States: OpenAI is heading toward a possible initial public offering amid rising internal tensions, escalating competition in the artificial intelligence sector, and increasing scrutiny of its governance structure, according to a Reuters Breakingviews report.
The report said OpenAI, led by CEO Sam Altman, has been a central driver of the global AI boom following the launch of ChatGPT nearly four years ago. However, it now faces mounting pressure from rival firms and questions over its long-term profitability as the industry rapidly expands.
According to estimates cited in the report, OpenAI has already raised approximately $186 billion in private funding, with its valuation standing at about $852 billion. Analysts project that its revenue could reach $34 billion this year and rise to $64 billion next year, reflecting explosive growth driven by demand for generative AI systems.
The company is reportedly targeting a potential IPO as early as September, while competitors such as SpaceX and AI rival Anthropic are also preparing for major public market listings or fundraising rounds. SpaceX could reportedly pursue a listing as early as June, with expectations of a valuation approaching $1.75 trillion.
The report highlights intensifying rivalry between OpenAI and Anthropic, founded by former OpenAI researchers, with the latter gaining traction in enterprise coding and business applications. Some usage metrics cited suggest Anthropic’s Claude system has recently surpassed OpenAI in certain corporate spending categories, although overall market dominance remains with OpenAI’s ChatGPT, which holds a majority share of generative AI traffic.
OpenAI is also projected to burn approximately $25 billion in cash this year due to heavy infrastructure and computing investments required to train and operate large-scale AI models. Despite this, analysts suggest the company could become cash-flow positive by 2031 if current growth trends continue.
The report also points to increasing strategic divergence within the AI sector, with firms prioritising either consumer-scale platforms or enterprise-focused tools, as demand for computing power drives up costs across the industry.
Founder Elon Musk’s continued involvement in the broader AI and technology ecosystem has also added competitive pressure, particularly through his ventures in artificial intelligence and high-performance computing infrastructure, which are increasingly intersecting with rival AI firms.
OpenAI’s strategy under Altman has focused on securing large-scale computing capacity through long-term infrastructure investments, including major joint ventures and data centre expansion plans. However, critics cited in the report argue that the company’s diversification into multiple experimental projects has diluted focus and strained resources.
The report also references governance and legal disputes involving OpenAI’s transition toward a for-profit structure, including a lawsuit filed by Musk challenging the company’s restructuring. Although Musk lost the case, proceedings revealed internal disagreements and raised questions about leadership conduct and organisational stability.
Further scrutiny has emerged over cross-investments between OpenAI and semiconductor firms supplying its infrastructure, raising potential conflict-of-interest concerns among US policymakers.
Analysts cited in the report say OpenAI remains the defining force in the AI industry but faces a more contested market landscape, where rivals are rapidly closing the gap in specialised enterprise applications and computing efficiency.
Despite strong revenue growth and investor interest, the company’s governance model, high capital requirements, and intensifying competition are expected to be key factors shaping its valuation and IPO prospects.