OpenAI has taken its first formal step toward becoming a publicly traded company, confidentially submitting draft registration documents to U.S. regulators. The move gives the creator of ChatGPT the option to enter the stock market, although the company has not committed to a launch date or disclosed how many shares it may sell.

A major reason for pursuing an IPO is OpenAI’s enormous need for capital. Developing increasingly powerful artificial-intelligence systems requires billions of dollars for advanced chips, data centers, research, employee recruitment and energy. Selling shares to public investors could give OpenAI access to a much larger and more dependable source of funding as it competes with Google, Anthropic, Meta and other technology companies.

Going public could also provide existing employees and early investors with a way to sell part of their holdings. Publicly traded shares would give OpenAI another tool for attracting top researchers, purchasing other companies and forming large infrastructure partnerships. Reports have suggested that a listing could value OpenAI at as much as $1 trillion, although the final figure would depend on market conditions and investor demand.

OpenAI ultimately hopes an IPO will provide the financial strength needed to continue developing advanced AI products and expand their use around the world. However, becoming public would also bring stricter financial disclosure requirements, pressure from shareholders and closer examination of the company’s spending, safety practices and path toward profitability. The filing therefore represents both a fundraising opportunity and a major test of whether public investors believe OpenAI can turn its technological influence into a sustainable long-term business.