AI Startups Considering Going Public, Says NYSE Executive

Several artificial intelligence (AI) startups are contemplating public listings, as per an executive at the New York Stock Exchange (NYSE). The tech listings marketplace has observed increased activity recently, suggesting a favorable environment for such transitions.

A Growing Interest in Going Public

Michael Harris, the global head of capital markets at NYSE, revealed at the Information’s Private Capital Conference that the majority of pure-play, AI-centric firms continue to finance themselves in private markets. However, he noted an emerging trend where certain companies are beginning to explore the process of going public.

This interest in transitioning to public ownership has been sparked by the success of several recent public offerings. For instance, Reddit Inc. saw its stock surge after it demonstrated to investors the potential profits from licensing its data to build AI systems. Astera Labs Inc., a semiconductor connectivity firm, also experienced a robust start to its trading.

Flourishing AI Startups

Since the release of ChatGPT in late 2022, numerous AI startups have emerged, dedicated to creating generative AI services for consumers and businesses. These enterprises have successfully raised billions from venture capital firms and large tech corporations, a testament to the high computing costs involved in developing AI tools.

Despite the burgeoning interest, Harris indicated that most of the AI startups considering initial public offerings (IPOs) primarily deal with enterprise products. However, he also cautioned that potential listings from these AI startups may not necessarily happen within the current year.

The rising interest in public listings among AI startups is a strong indicator of the growing confidence in the sector and the increasing acceptance of AI technologies on Wall Street. It will be interesting to observe whether these potential listings materialize and how they perform in the public markets.