OpenAI has filed confidential IPO paperwork with the SEC, setting up a potential debut that could value the ChatGPT creator above $1tn. The filing puts the San Francisco company on track to trade as early as autumn, joining a wave of massive tech listings including SpaceX's expected $86bn offering and Anthropic's recent filing.

The IPO marks a critical test of investor appetite for AI companies posting rapid revenue growth alongside massive losses. OpenAI plans to spend heavily on data centers and computing infrastructure to serve ChatGPT's 900 million users while competing with Google and other rivals. The company previously raised up to $122bn in private funding, including $3bn from retail investors.

OpenAI will launch an employee share sale at its current $852bn valuation before going public, giving workers liquidity options. The company worked with Goldman Sachs and Morgan Stanley on preparations, and a recent court ruling dismissed Elon Musk's legal challenge against OpenAI and CEO Sam Altman.

These listings coincide with intense investor enthusiasm for AI, which has driven US stocks to record highs but raised concerns about market overheating. The IPO pipeline signals Wall Street's confidence in artificial intelligence's commercial potential despite ongoing profitability challenges.