Why OpenAI IPO may not happen in 2026 as CFO Sarah Friar flags financial risks

A high-stakes internal rift is brewing at the world’s most valuable AI startup. OpenAI’s Chief Financial Officer, Sarah Friar, has reportedly expressed reservations about CEO Sam Altman’s ambitious timeline to take the company public as early as the fourth quarter of 2026.

While Altman is eyeing an initial public offering (IPO) to cement OpenAI’s dominance, Friar is waving a red flag over the company’s "burn rate" and the massive organisational overhaul required before going public.

Why is OpenAI CFO worried?

According to a report by The Information, Friar has warned colleagues that OpenAI may not be "IPO-ready" by 2026.  

Her concerns are rooted in the scale of the company's financial commitments, most notably a pledge of over $600 billion toward cloud server capacity over the next five years. 

Friar has flagged these commitments as a potential risk, particularly given that revenue growth is moderating.

The CFO is also said to be concerned about the company’s cash burn. OpenAI is expected to spend upwards of $200 billion before turning cash-flow positive, raising questions about how public market investors would price such long-term bets. 

While AI infrastructure is widely seen as a strategic moat, Friar has reportedly questioned whether the pace and magnitude of these investments are justified in the near term.

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How complex is OpenAI’s funding structure?

Complicating matters further is the structure of OpenAI’s funding. A significant portion of the recently announced $122 billion in financing is expected to come from partners such as Amazon and NVIDIA, adding layers of dependency and execution complexity.

While these partnerships are critical for securing compute capacity, they could also introduce operational and financial constraints that public market investors may scrutinise closely.

Is there internal friction within OpenAI’s leadership?

The divergence in views highlights a broader strategic dilemma facing AI companies globally: how to balance capital-intensive infrastructure buildouts with the expectations of profitability and transparency that come with being publicly listed.

The report also points to signs of internal friction beyond strategy. Friar has reportedly been excluded from some key financial discussions, with her reporting line shifting to Fidji Simo instead of directly to Altman.  

However, both executives have publicly maintained that they are aligned on the company’s broader compute strategy, The Information added.

At the same time, reports also suggest that Simo is taking several weeks of medical leave after a relapse of postural orthostatic tachycardia syndrome, a condition affecting the nervous system.

These developments come after two senior executives stepped back from their roles. Chief Marketing Officer Kate Rouch announced on LinkedIn that she is leaving her role to focus on her recovery from cancer.

Meanwhile, Chief Operating Officer Brad Lightcap is moving into a newly-created role focused on special projects, including a potential joint venture with private equity firms aimed at distributing OpenAI's technology more broadly.

What does this mean for OpenAI’s IPO?

For now, the debate underscores that OpenAI’s IPO timeline remains far from settled. 

While Altman appears keen to accelerate the company’s entry into public markets, Friar’s caution reflects a more traditional view of financial readiness.

Earlier reports suggested that SpaceX had confidentially filed with the US Securities and Exchange Commission (SEC) and is seeking a valuation of about $1.75 trillion, with plans to raise as much as $75 billion.