OpenAI's IPO could happen by end of 2026
What's the story
OpenAI is preparing for an initial public offering (IPO) by the end of this year, CNBC reported. The AI start-up is now focusing on its enterprise business as part of this process. Fidji Simo, OpenAI's CEO of Applications, recently held an all-hands meeting with employees and emphasized the company's commitment to helping businesses and driving high-productivity use cases.
User conversion
Converting users into high-compute users
Simo said at the meeting that OpenAI's goal is to convert its 900 million weekly active users into high-compute users. The company plans to achieve this by transforming ChatGPT into a productivity tool. This move comes as part of OpenAI's strategy to take on competitors like Google and Anthropic in the enterprise market.
IPO details
IPO likely in Q4 2026
OpenAI's IPO could happen as early as Q4 2026, a source familiar with the matter told CNBC. Ahead of this market debut, CFO Sarah Friar is expanding OpenAI's finance team. Earlier this year, she hired Ajmere Dale (former chief accounting officer at Block) and Cynthia Gaylor (former CFO of DocuSign). Gaylor will handle investor relations in her new role.
Competition response
'Not everything is an emergency'
In December, OpenAI had declared a "code red" effort to improve ChatGPT amid stiff competition from Google and Anthropic. The company had even paused investments in other areas like health, shopping, and advertising. Simo said during the March all-hands meeting that while they're moving with urgency, not everything can be declared an emergency. She stressed on staying focused and executing well at this stage of their journey.
Financial outlook
OpenAI's clearer spending targets
OpenAI has been working on clearer spending targets after ambitious infrastructure commitments in late 2025 rattled markets. The company is now targeting a total compute spend of around $600 billion by 2030, instead of the $1.4 trillion figure previously touted by CEO Sam Altman. OpenAI expects its total revenue for 2030 to exceed $280 billion, with consumer and enterprise businesses contributing nearly equally.