OpenAI faces a dilemma as it approaches its IPO.

A year ago, news of OpenAI's listing generated intense interest on Wall Street, and even massive financial losses and doubts about management did not become major obstacles.

According to the Wall Street Journal (WSJ) on the 14th (local time), CEO Sam Altman overcame an attempt to oust him two years ago and elevated OpenAI to an undisputed industry leader, securing growth momentum through close cooperation with Microsoft.

▲ Distant partnerships and intensified competition

However, the current situation has become far more opaque than before.

The relationship with Microsoft has become more strained, and its flagship product ChatGPT no longer maintains an overwhelming No. 1 position in the AI market.

To make matters worse, the company's valuation in the private market has been overtaken by competitor Anthropic.

Although the company won a legal battle with CEO Elon Musk last May, the process exposed the company's internal vulnerabilities to the public.

▲ Legal setbacks pouring in and weakened investment sentiment

Apple's trade secret infringement lawsuit that occurred last Friday has emerged as another headache.

Regardless of the lawsuit's outcome, such legal disputes are sufficient to shake investors' confidence.

Particularly, the AI device business competing with Apple's iPhone is one of OpenAI's core growth strategies, making it even more critical.

OpenAI [AFP/Yonhapnews]

▲ A race against time to secure market dominance

OpenAI submitted IPO documents to regulators last month.

The company has clear reasons to rush its listing.

The biggest reason is that it must secure market share before competitor Anthropic absorbs large amounts of investor capital through its own IPO.

▲ Leadership vacuum and strategic caution

Nevertheless, the challenges OpenAI faces require a cautious approach.

At minimum, it is not ideal to proceed with listing before finding a successor to Altman's right-hand man, the number two executive who is stepping down for health reasons.

▲ A dilemma: Should it rush or wait?

In an ideal situation, Altman and the board would be wise to wait until next year, or at least until the current turmoil subsides, including legal disputes and leadership changes.

However, next year may already be too late.

Since Anthropic submitted IPO documents before OpenAI, there is a significant possibility that by next year, Anthropic will successfully establish itself in the market and brand OpenAI as a lagging company dwelling in past glory.

In the end, both accelerating and waiting carry considerable risks.

However, given the mounting challenges, arguments are gaining traction that OpenAI's best option is to go public as quickly as possible and secure funding before the problems become more serious.