OpenAI CFO raises concerns over Sam Altman’s IPO dreams in 2026: Here’s what she reportedly stated

OpenAI’s Chief Financial Officer Sarah Friar has expressed serious doubts about CEO Sam Altman’s plan to take the company public as early as the fourth quarter of 2026, according to a report by The Information.

Friar reportedly told colleagues that OpenAI may not be organisationally or procedurally ready for a public listing by late 2026. She added that massive groundwork is still needed in compliance, reporting systems, and internal processes to meet the rigorous demands of public markets.

Altman has been pushing for a Q4 2026 IPO and has committed the company to spending up to $600 billion over the next five years on AI infrastructure and compute resources. In contrast, Friar has questioned the necessity of such heavy investments in AI servers, especially amid slowing revenue growth and a projected cash burn exceeding $200 billion.

Sources reportedly say that Altman has stopped inviting Friar to certain key financial meetings with investors. Friar is believed to prefer a more measured approach, possibly targeting 2027 to better prepare the company for going public.

CFO flags financial risks and spending concerns

OpenAI recently secured investment commitments of $122 billion, pushing its valuation to around $852 billion. The company completed a major restructuring last year, which reduced its dependence on Microsoft and paved the way for greater independence in raising capital. An IPO could help fund Altman’s ambitious vision of trillion-dollar-scale AI development, potentially valuing the company at up to $1 trillion.

However, going public ins’t easy even for a firm the size of OpenAI, as it would ensure stricter regulatory oversight, quarterly financial disclosures, and intense investor pressure for profitability and sustainable growth. Friar has raised red flags about the company’s “burn rate” and whether current revenue trajectories can support the aggressive spending plans.

OpenAI has not confirmed any official IPO timeline. The company has previously stressed that an IPO is “not our focus,” choosing to prioritise the mission of advancing artificial general intelligence (AGI) responsibly while building a strong, durable business.

Rift amid OpenAI’s crucial growth phase

This reported rift comes as OpenAI continues to lead in generative AI with tools like ChatGPT and Codex, even as the company faces growing competition and enormous compute expenses. OpenAI has recently signed a deal with the US Department of Defence after rival firm Anthropic backed out of a deal over concerns of the usage of AI in weapons and mass surveillance. Additionally, the maker of ChatGPT has chosen to scale up its AI model development while putting aside plans for an advertisement system and other projects.

The company also underwent a reshuffle in its senior management lately, with COO Brad Lightcap transitioning from his role to lead “special projects”, focusing on complex deals and investments. Lightcap will now report directly to Sam Altman.