Private companies enjoy a unique privilege: for a while, they can live in a world built around vision. They raise capital from investors who believe in the technology, the founders, the future market, and the story the company tells about itself. But when a company begins moving closer to the public market, something changes. The vision still matters, but it is no longer enough. The numbers need to support it.
According to Reuters, Sam Altman told OpenAI employees that the company plans to go public in the coming year, following reports that it had confidentially filed IPO paperwork in the United States. At the same time, Business Insider reported that both OpenAI and Anthropic had submitted confidential filings ahead of potential IPOs, with each company potentially seeking a valuation approaching $1 trillion.
What makes this especially interesting is the extraordinary impact these two companies have already had on the world. Because of that impact, there is a great deal to learn from their potential IPOs. As part of the IPO process, and through the prospectus that comes with it, even companies that are changing the world must eventually stand before the public market and explain why their numbers justify the trust and capital of public investors.
Vision Does Not Replace a Business Model: How Will the Companies Changing the World Create Long-Term Value for Investors?
OpenAI and Anthropic are not just regular software companies. They stand at the center of one of the biggest technological revolutions of recent years, perhaps the biggest since the internet, and they are changing the way hundreds of millions of people work. Precisely because the vision is so large, the financial question becomes even more important: how will these companies turn this revolution into a profitable and sustainable business model?
We have already written extensively about the challenging economics of the AI industry. Market leaders are investing enormous amounts of capital in computing power, data centers, chips, advanced models, research teams, cloud infrastructure, security, regulation, and strategic partnerships with major technology companies. But even as their revenues grow, their cost base remains enormous, putting real pressure on Gross Margin, an important metric we have also discussed in depth.
This is where the real test of the numbers begins. The financial reports of AI companies cannot simply show revenue growth or a global vision. They need to explain whether every new dollar from customers brings the company closer to profitability, or merely funds another layer of infrastructure costs. The reports need to show whether the business model can create a clear path to economic viability in the foreseeable future.
IPO, Investment, or Exit With Danoy: Aligning the Numbers With Your Company’s Vision
For business owners, the clear lesson from the potential IPOs of OpenAI and Anthropic is not that only AI giants need to prepare for the public market. The lesson is that every company preparing for a major growth move, whether it is a sale, a fundraising round, or an IPO, must align its numbers with its vision.
Its financial reports need to explain how the company funds its activity, how it can scale, and which assets, plans, or business fundamentals truly justify the valuation it is aiming for.
At Danoy, we see this again and again with the growth companies we support. Just before a funding round or exit, a strong product and a compelling story are no longer enough. Companies also need organized financial reports, reliable forecasts, cash flow analysis, a clear financial structure, and the ability to explain the business through the numbers.
Because the move from a private company to a public company is not merely a change in ownership structure. In many ways, the same is true of any significant fundraising round. It is a move from a world where investors believe in the story, to a world where the story must prove itself through a business plan, execution on that plan, and results that are reflected in the financial reports.
So if your company is preparing for a funding round, due diligence process, or exit, talk to us. At Danoy, we help growth companies build the financial infrastructure that connects the business story, the numbers, and the trust investors need to see.