In the intense competition between AI leaders OpenAI and Anthropic, the race to unveil superior technology will significantly influence who emerges victorious. However, the timing of their respective public offerings is also crucial to their success.
The current market conditions favor initial public offerings, as demonstrated by Cerebras, an AI-chip manufacturer that saw its stock soar by 68% on its debut last month. This performance was overshadowed only by Figma's stunning 250% increase last year among companies valued over $10 billion at their initial listing, based on data from FactSet.
Adding to the fervor, SpaceX, led by Elon Musk, plans to launch what could become the largest IPO ever, targeting a staggering $1.5 trillion in valuation this summer. This potential blockbuster is likely to elevate the stakes for other companies considering going public.
In light of this competitive landscape, both OpenAI and Anthropic are eager to be the first major AI model developer to make its debut on the public stage. Anthropic has taken steps by submitting confidential documents for a potential listing, which could occur as soon as this fall, while OpenAI continues discussions with financial institutions regarding its own IPO filing.
Being the first to go public comes with notable benefits, but being second has its own set of significant drawbacks. Research indicates that IPOs often cluster within specific sectors, and firms that enter the market later in the cycle tend to underperform. This trend occurs because earlier listings typically consist of companies with stronger fundamentals and competitive advantages, leading to a rush of less robust contenders that follow.
