Several AI Companies Exploring IPOs as Tech Listings Gain Momentum

Several artificial intelligence (AI) startups are reportedly considering the path to going public, according to Michael Harris, the global head of capital markets at the New York Stock Exchange (NYSE). Speaking at the Information’s Private Capital Conference on April 9, 2024, Harris stated that while the majority of AI-focused companies are still primarily securing financing through private markets, a small but growing number are exploring initial public offerings (IPOs).

The rapid rise of generative AI since the launch of ChatGPT in late 2022 has led to a surge in AI startups, many of which have raised substantial capital from venture firms and large tech companies. These startups have been driven by the high computational costs needed to develop AI services for both consumers and businesses.

The demand for AI-related IPOs is becoming increasingly evident on Wall Street. Companies such as Reddit, which successfully debuted by demonstrating its potential to profit from AI data licensing, and Astera Labs, a semiconductor connectivity firm, have experienced strong performances in the public markets. This indicates a growing appetite among investors for AI-related ventures and could pave the way for more AI startups to make their mark on the stock exchange.