OpenAI future IPO possible but not promised: OpenAI CFO on new corporate structure

OpenAI’s ongoing restructuring could pave the way for a potential initial public offering (IPO) in the future, according to a report by Reuters. However, any such move would hinge on both market sentiment and the company’s own preparedness, said Chief Financial Officer Sarah Friar.

Speaking at the Dublin Tech Summit on Wednesday, Friar said, “A PBC gets us to an IPO-able event ... if and when we want to,” referring to the company’s plan to operate its for-profit arm as a public benefit corporation (PBC). However, she cautioned against overinterpreting her remarks, adding, “Nobody tweet in this room that Sarah Friar just said anything about OpenAI ultimately going public. I did not. I said it could happen.”

As reported by Reuters, OpenAI, best known for developing ChatGPT and backed by over $13 billion in investment from Microsoft, announced in December that it would convert its for-profit division into a PBC. The aim was to align profit-making with social goals, offering more flexibility than a traditional nonprofit.

Earlier this month, the company revised those plans. While the nonprofit parent will retain control and become a significant shareholder in the PBC, the revised structure still allows the for-profit unit to raise fresh capital, crucial in the fast-moving AI landscape.

The company is also embarking on significant infrastructure projects. In collaboration with SoftBank and Oracle, OpenAI is leading the $500 billion Stargate project, aiming to build AI data centres across the United States. The initiative includes a $40 billion investment by Oracle to purchase Nvidia chips for a new data centre in Texas.

Additionally, OpenAI has expanded its global presence by opening its first office in Seoul, South Korea, in response to the country's rising demand for its ChatGPT service.

However, the company's restructuring has faced legal challenges. Co-founder Elon Musk filed a lawsuit alleging that OpenAI's shift toward a for-profit model breaches its original mission. A federal judge in California denied Musk's request to block the restructuring, allowing OpenAI to proceed with its plans.

OpenAI has also recently acquired io, an AI hardware startup founded by former Apple designer Jony Ive, in a $6.5 billion equity deal. The acquisition is part of OpenAI's strategy to develop advanced AI devices that could redefine human-computer interaction.

As OpenAI continues to evolve, its path toward a potential IPO will depend on navigating market conditions, regulatory landscapes, and internal readiness. The company's recent initiatives and structural changes indicate a strategic positioning for future growth and public investment.