New Delhi [India], June 9 (ANI): OpenAI, the creator of ChatGPT, confidentially filed for an initial public offering IPO on Monday. The move positions the artificial intelligence firm for a highly anticipated stock market debut. It also sets up a substantial payout for the company's early financial backers.

OpenAI confirmed the submission of the paperwork in a statement. The company decided to share the news proactively due to expectations of public exposure regarding the regulatory filings.

'We recently submitted a confidential S-1,' OpenAI said in an official statement. 'We expect it to leak so we're just announcing it.'

The tech firm indicated that the exact timeline for transitioning to a publicly traded entity remains open. Internal business objectives continue to influence the company's immediate structural choices.

'We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company,' OpenAI said.

'But it's a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best,' the company added.

The company noted that the regulatory announcement complies with standard legal provisions under federal securities laws. The initial filing does not represent an active invitation for investor capital.

'This announcement is being made pursuant to Rule 135 under the Securities Act of 1933, as amended, and does not constitute an offer to sell or the solicitation of an offer to buy any securities,' OpenAI stated.

'Any offers, solicitations of offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act,' the statement continued.

The development follows a similar regulatory move by competitor Anthropic. The US-based artificial intelligence company previously submitted its own draft registration statement to the US Securities and Exchange Commission for a proposed public offering of its common stock.

Anthropic issued its announcement earlier this month, noting that the paperwork provides flexibility for a future listing. The competitor recently achieved a valuation of nearly one trillion dollars, moving ahead of OpenAI.

'Today, Anthropic, PBC confidentially submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission for a proposed initial public offering of our common stock,' Anthropic said in a post.

'This gives us the option to go public after the SEC completes its review. The proposed initial public offering will depend on market conditions and other factors,' the company added.

Anthropic also stated that the volume of shares and pricing details remain undecided. It clarified that its notice followed Rule 135 guidelines and did not serve as an active marketing effort for shares. (ANI)