OpenAI is going public as the worst value among its AI peers

Article excerpt

OpenAI's planned initial public offering faces skepticism from market analysts who argue the company is commanding a higher valuation multiple than rivals despite slower revenue growth. The AI startup is seeking a $150 billion valuation, but comparable firms like Anthropic and xAI are growing faster on smaller revenue bases, suggesting OpenAI may be pricing itself at a premium its financials don't justify. The timing coincides with broader investor concerns about whether AI companies can sustain their astronomical valuations as competition intensifies and deployment timelines stretch. Whether OpenAI can convert its market-leading position in generative AI into proportional financial returns remains an open question for potential public shareholders.