OpenAI Prepares IPO Filing After Elon Musk Lawsuit Dismissal

OpenAI is preparing to file paperwork for an initial public offering in the coming days, a move that could set the stage for one of the largest technology listings in history. The company is reportedly working with investment banks Goldman Sachs and Morgan Stanley on a confidential draft prospectus, with a potential stock market debut as early as September.

The accelerated timeline follows a significant legal victory for the company earlier this week. A federal jury in California unanimously rejected a lawsuit filed by Elon Musk, an estranged co-founder, against OpenAI, its chief executive Sam Altman, its president Greg Brockman, and Microsoft. The jury determined that Musk’s claims, which alleged the defendants improperly transformed OpenAI from a nonprofit into a for-profit business, were filed after the applicable legal deadlines had expired.

U.S. District Judge Yvonne Gonzalez Rogers said she accepted the jury’s verdict, noting substantial evidence supported the finding. The ruling was based on procedural timing rather than the substantive merits of Musk’s allegations. Following the decision, Musk stated on his social media platform that he plans to appeal to the Ninth...