OpenAI IPO strategy to include retail investors, says CFO Sarah Friar

OpenAI, the AI startup company, is planning for an initial public offering (IPO), and it may plan to reserve a portion of shares for retail investors, not only big institutions, said Chief Financial Officer Sarah Friar in a CNBC interview. It is reported that OpenAI is expected to have a very large and high-profile IPO.

Friar revealed that OpenAI has recently tested interest from everyday investors during its recent funding round, and the company found a strong demand from individual investors. Due to this reason, the company may reserve some shares for retail investors when it launches its IPO.

Friar also talked about the SpaceX IPO, as it is expected to go public around June 2026. She revealed that the company is planning to reserve about 30% of its shares for retail buyers. “Everybody wants to own part of a rocket company — I hope everyone wants to own part of ChatGPT. It helps when you’re a consumer brand,” Friar said.

OpenAI recently had a $122 billion funding round, up from the $110 billion figure in February. Now, the company is valued at $852 billion, making it one of the most valuable companies in Silicon Valley. 

“At our scale, raising equity forever doesn’t make any sense,” she said. “You want to start moving down from equity.” 

Despite the enthusiasm, Friar previously raised concerns about OpenAI’s timeline of going public, as CEO Sam Altman plans for a 2026, flagging risks around heavy spending and whether the company is truly IPO-ready. 

Friar was also concerned about OpenAI’s huge financial commitment as it plans to invest over $600 billion in cloud infrastructure over the next five years and another $200 billion before it starts making positive cash flow. At the same time, revenue growth is slowing down, which makes such heavy spending risky.

In the recent interview, Friar also highlighted the benefit of going public, as it would help OpenAI to raise more money through options like convertible debt and investment-grade loans. She also stated that it will help the company raise massive funds to build more computing power.