Is OpenAI planning a stock market debut? CFO responds
What's the story
OpenAI's recent restructuring moves have opened up the possibility of a future initial public offering (IPO), according to Chief Financial Officer Sarah Friar.
However, she stressed that any such decision would depend on market conditions and the company's readiness.
The AI company, backed by over $13 billion from Microsoft, had announced plans in December to transition its for-profit subsidiary into a public benefit corporation (PBC).
Strategic shift
OpenAI's PBC transition and control structure
The proposed transition to a PBC was aimed at balancing shareholder returns with social objectives.
However, earlier this month, OpenAI revised its plan.
The updated strategy gives the nonprofit parent company control over the PBC through significant shareholding.
At the same time, it allows its for-profit subsidiary to raise more capital and remain competitive in the AI race.
Market dynamics
CFO's insights on IPO readiness and market conditions
Speaking at the Dublin Tech Summit, Friar said a PBC could lead to an "IPO-able event" if and when OpenAI chooses.
However, she clarified that this is not a confirmation of any imminent plans for an IPO.
When asked what would prompt such a decision, Friar emphasized that both company and market readiness are crucial factors.
Growth strategy
OpenAI's future plans and capital requirements
Friar also highlighted the massive capital OpenAI would need in the coming years.
She said a one gigawatt data center footprint costs about $50 billion, but the company's "appetite and ambition" is to expand to around 10 gigawatts.
The CFO also emphasized that while they would seek efficiencies, their main focus is on developing the next breakthrough product.