OpenAI is moving toward a confidential initial public offering filing as soon as Friday, CNBC reported Wednesday, citing sources familiar with the matter. The artificial intelligence company behind ChatGPT would submit a draft registration statement to the Securities and Exchange Commission under the JOBS Act, which allows emerging growth companies to file confidentially. The confidential filing would keep financial details and business plans private until closer to the IPO roadshow.

The company has been exploring a public listing for months as it seeks to raise capital to fund its expensive AI research and development. OpenAI has raised billions from investors including Microsoft, which has invested over $13 billion. The company's valuation has soared to around $80 billion in private markets, according to reports.

OpenAI's potential IPO comes amid intense competition in the AI sector, with rivals like Anthropic and Google also racing to develop advanced models. The company generates revenue through subscriptions to ChatGPT Plus, API access for developers, and enterprise offerings. However, it has not yet turned a profit, with high computing costs eating into revenue.

The confidential filing process allows companies to test investor appetite without public scrutiny. If OpenAI proceeds, it would join a wave of tech IPOs that have been slow to materialize in 2024. The company has not confirmed the report, and plans could change.

An IPO would provide OpenAI with a public currency to acquire talent and make acquisitions. It would also give Microsoft and other investors a path to liquidity. The company's board includes figures like Sam Altman, Greg Brockman, and Ilya Sutskever.

OpenAI has not disclosed a timeline for the IPO or the number of shares to be offered. The company is reportedly working with investment banks including Goldman Sachs and Morgan Stanley on the listing. The IPO could value OpenAI at over $100 billion, sources told CNBC.

The company's confidential filing would be a major milestone for the AI industry. OpenAI's ChatGPT launched in November 2022 and quickly became one of the fastest-growing consumer applications in history. The company has since expanded into enterprise AI and image generation.

OpenAI declined to comment on the CNBC report. The SEC also declined to comment. The company's IPO plans remain subject to market conditions and regulatory approval.

The US economy has essentially transformed into a high-stakes wager on artificial intelligence, according to Lazard CEO Peter Orszag. Speaking at a conference, Orszag described the current economic landscape as a “levered bet on AI,” highlighting the technology’s outsized influence on stock market gains and broader economic growth. He noted that the surge in AI-related investments and valuations has created a scenario where the economy’s trajectory is tightly tied to AI’s continued advancement.

Orszag pointed to the dramatic rise in AI-driven companies’ stock prices, which have propelled major indices to record highs. This concentration of market performance in AI and tech sectors, he argued, introduces vulnerability. If AI fails to deliver on its promises or faces regulatory setbacks, the economic fallout could be severe. The CEO cautioned that this dependency amplifies both upside potential and downside risk.

The remarks come amid a broader debate about AI’s economic impact. While proponents highlight productivity gains and innovation, critics warn of job displacement and market bubbles. Orszag’s comments reflect growing unease among financial leaders about the sustainability of AI-fueled growth. He stressed that the economy’s current structure leaves little room for error, as gains are heavily concentrated in a narrow set of industries.

Lazard, a financial advisory and asset management firm, has been closely monitoring AI’s influence on mergers and acquisitions. Orszag noted that many clients are restructuring their portfolios to capitalize on AI trends, further entrenching the technology’s role in corporate strategy. This shift, he said, underscores the need for diversified investment approaches to mitigate risk.

Orszag also addressed potential policy implications, suggesting that governments should prepare for AI-driven economic shifts. He called for careful regulation that fosters innovation while preventing systemic instability. The CEO’s statements align with recent warnings from other financial figures about the dangers of overconcentration in tech stocks.

Despite the risks, Orszag acknowledged AI’s transformative potential. He described it as a “once-in-a-generation” opportunity that could redefine industries and boost productivity. However, he emphasized that the current market pricing already reflects high expectations, leaving little room for disappointment.

The interview concluded with Orszag reiterating that the US economy’s fate is now closely intertwined with AI’s trajectory. He urged investors and policymakers to remain vigilant, as the stakes have never been higher. The full remarks were delivered at the Bloomberg Invest Summit in New York on June 5, 2024.

A new wave of sentiment is emerging among young adults entering the workforce: skepticism toward artificial intelligence. Despite being raised in an era of rapid technological change, many in this demographic express unease about AI's role in their professional futures. Surveys and interviews reveal a pattern of concern rather than excitement, challenging the assumption that younger generations automatically embrace new technologies.

Research conducted by several organizations indicates that a significant portion of 18- to 29-year-olds believe AI will lead to job losses or reduced opportunities in their fields. A recent poll found that nearly 60% of respondents in this age group worry that automation will replace human workers in the next decade. This anxiety is particularly acute among those pursuing careers in creative industries, customer service, and administrative roles.

Experts point to several factors driving this apprehension. Many young workers have witnessed firsthand the displacement of jobs in retail, media, and manufacturing due to automation. Additionally, the rapid adoption of generative AI tools like ChatGPT has raised questions about the value of entry-level positions that often serve as stepping stones for career development. Students and recent graduates report feeling pressure to acquire skills that may become obsolete before they can fully leverage them.

Educational institutions are responding to these concerns by incorporating AI literacy into curricula. Some universities now offer courses on the ethical implications of AI and its societal impact. Career counselors advise students to focus on developing uniquely human skills such as critical thinking, emotional intelligence, and adaptability. However, many young people remain skeptical that these measures will be sufficient to protect their livelihoods.

The technology industry itself is divided on how to address these fears. Some companies emphasize the potential for AI to augment human capabilities rather than replace them. Others acknowledge the need for retraining programs and social safety nets to support workers during transitions. Yet, critics argue that these efforts are insufficient given the pace of change.

Government policymakers are also taking note. Several countries have proposed regulations requiring companies to assess the impact of AI on employment before deploying new systems. In the United States, the Biden administration has issued an executive order on AI safety that includes provisions for workforce development. Similar initiatives are underway in the European Union and Japan.

Despite these efforts, the sentiment among young people remains cautious. A recent survey by the Pew Research Center found that only 35% of Americans aged 18 to 29 believe AI will help them in their careers, compared to 55% of those aged 50 and older. This generational divide suggests that the narrative of AI as a tool for progress is not universally accepted.

As AI continues to evolve, the voices of young workers will likely grow louder. Their concerns may shape how technologies are developed and deployed in the coming years. For now, the message from this demographic is clear: they are not ready to applaud the arrival of AI without assurances that their futures will not be compromised.

Anthropic has communicated to its investors that the company is on track to post its first profitable quarter. The artificial intelligence firm projects revenue will more than double to roughly $10.9 billion in the second quarter of the fiscal year. This financial milestone represents a notable shift for the company, which has historically operated at a loss.

The revenue surge is driven by strong demand for Anthropic's AI models and enterprise services. The company has expanded its customer base, particularly among large corporations seeking advanced AI capabilities. Anthropic's Claude family of models has gained traction in sectors such as finance, healthcare, and technology.

Anthropic's path to profitability comes amid intense competition in the AI industry. Rivals like OpenAI and Google have also seen rapid revenue growth, but many AI startups continue to burn cash. Anthropic's ability to achieve profitability earlier than some peers could give it a strategic advantage in attracting further investment.

The company's revenue growth has been fueled by both subscription services and usage-based pricing for its API. Enterprise clients have increasingly adopted Anthropic's models for tasks such as content generation, data analysis, and customer service automation. The company has also benefited from long-term contracts with major tech firms.

Anthropic's cost structure has improved as it scales its infrastructure and optimizes model training efficiency. The company has invested heavily in computing resources and research, but these costs are now being offset by rising revenue. Management has focused on operational discipline to reach profitability.

The profitable quarter forecast comes ahead of a potential initial public offering. Anthropic has been exploring public market options, and a strong financial performance could bolster its valuation. The company last raised funding at a valuation of over $18 billion.

Anthropic has not publicly commented on the financial projections. The information was shared with investors in a private briefing. The company's board and leadership team have expressed confidence in the trajectory, citing robust demand and operational improvements.

The second quarter ends June 30. Anthropic is expected to report official financial results in the following weeks. The company's achievement of profitability would mark a significant milestone in the competitive AI landscape.