OpenAI delays IPO over AI safety concerns

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The group said their suit against OpenAI was the first of its kind, as analysts warn the start-up could face a wave of novel legal claims.

“Given what we see in terms of progress and development [in AI], the frequency and sophistication of these hacking instances are only going to increase,” said Vivian Dong, programs director at LASST.

“We definitely feel we need new regulations and laws, but at the same time it’s currently illegal to hack a third-party system, it’s a crime… I suspect OpenAI are very aware of the legal risks of what their agents are doing,” Dong added.

Having already pushed its IPO to next year, OpenAI is in talks with investors about a new private funding round. The company is seeking to raise $30 billion or more at a valuation of about $1.4 trillion, according to people familiar with the matter. The $30 billion target was first reported by Bloomberg.

The company is hoping to extend an upturn in its commercial fortunes and tackle a growing threat from rivals with the release of new AI assistants called Dots, represented by cuddly avatars.

Meta’s share price has risen about 18 percent since it launched its own AI personal assistant called Muse on September 8.

OpenAI’s Dots could be used by influencers to draft social media posts or by scientists to evaluate evidence launch, said OpenAI, which aims to capitalize on the huge commercial opportunity of providing personal intelligence to customers.

The start-up’s annualized revenue has grown more than 70 percent since July, when it released GPT-5.6, and is now about $70 billion, according to a person with knowledge of the group’s finances.

The $852 billion company is also exploring new ways to monetize its existing AI models and extend its reach beyond the 1.2 billion consumers and enterprise users it currently claims.

OpenAI will also have to convince customers that Dots will be reliable enough to play a role in users’ personal and work life.

That effort has taken on renewed importance amid OpenAI’s calls for rival labs to slow the pace of development of new models. On Monday, OpenAI said it was scrapping the planned release of its latest model, citing safety concerns.

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