Key Takeaways
- OpenAI’s recent restructuring could allow it to become a publicly traded company in the future, though no firm decision has been made.
- The company’s for-profit arm may become a public benefit corporation (PBC), designed to balance profit with social objectives.
- A potential stock market debut would depend on favorable market conditions and OpenAI’s own preparedness, according to its CFO.
- OpenAI anticipates needing massive amounts of capital for its ambitious growth plans, especially in the AI search sector.
OpenAI is making structural changes that could open the door to a future Initial Public Offering (IPO), its Chief Financial Officer Sarah Friar explained. However, she cautioned that any move to go public would hinge on the overall mood in the financial markets and the company’s own readiness.
The company, known for ChatGPT and backed by over $13 billion from Microsoft, has been exploring how to best structure its for-profit operations. One idea involves transforming it into a public benefit corporation (PBC). This type of company aims to generate returns for shareholders while also pursuing broader social goals.
According to Reuters, Friar, speaking at the Dublin Tech Summit, clarified that while a PBC structure “gets us to an IPO-able event,” it doesn’t mean an IPO is imminent. “Nobody tweet… that Sarah Friar just said anything about OpenAI ultimately going public,” she quipped, adding, “I did not. I said it could happen.”
Friar noted that, like any company considering a stock market launch, both OpenAI and the markets themselves would need to be prepared. “You can show up at the altar all ready to go, and if the market’s not ready for you, yeah, you’re just out of luck,” she said.
This uncertainty underscores the need to build a company that is “sustainable and safe regardless of where the public markets are.” For a company to go public, Friar added, “you definitely need some sense of predictability,” even if markets tolerate some unpredictability during periods of high growth.
The scale of OpenAI’s financial needs is substantial. Friar indicated that while a 1-gigawatt data center footprint costs around $50 billion, OpenAI’s ambitions over the next few years target something closer to 10 gigawatts.
Looking ahead, Friar identified the rapidly expanding AI search market as a key priority. She emphasized that while efficiency is important, the primary focus remains on developing the next groundbreaking product, rather than “spending an inordinate amount of time trying to save an extra 1%.”
