OpenAI’s Chief Financial Officer Sarah Friar said Wednesday that the company’s restructuring creates an option for a possible IPO, but any decision will depend on market conditions and the company’s readiness.
Friar emphasized that no final decision has been made and that both the company and public markets must be prepared for an IPO. “You can be ready, but if the market isn’t, then you’re out of luck,” she said.
OpenAI plans to convert its for-profit arm into a public benefit corporation (PBC), a structure balancing shareholder returns with social goals. The nonprofit parent will retain control of the PBC through a large shareholding, while the for-profit unit continues raising capital to compete in the AI sector.
Friar said the company aims to remain sustainable regardless of public market conditions and that predictability is important for going public. While growth can tolerate some unpredictability, the market generally prefers companies with more stable outlooks.
Highlighting the scale of investment needed, Friar noted that a 1 gigawatt data center footprint costs about $50 billion, and OpenAI’s goal over the next few years is closer to 10 gigawatts.
She also identified the AI search market as a growing priority. The company will focus on developing breakthrough products rather than small efficiency gains.
“In that world, I don’t want people spending too much time saving a small percentage when they could be building the next state-of-the-art product,” Friar said.
OpenAI has received more than $13 billion in investment from Microsoft. The restructuring is intended to allow the for-profit arm to raise capital while maintaining the nonprofit parent’s control.
