OpenAI IPO: Differences Between Altman, CFO Over Launch Timing, Say Reports

Leading artificial intelligence company OpenAI, which has announced its plans to go public soon, is reportedly facing challenges due to internal tensions. Chief Financial Officer Sarah Friar has cautioned the company may not be ready for an initial public offering (IPO) by the fourth quarter of 2026, according to The Information, as cited in a Moneycontrol report.

According to Friar, a lot of work is still needed, including compliance and internal systems, before the company can launch its issue. She also raised concerns about rising costs, the report added. Friar's stance contrasts with that of CEO Sam Altman, who appears keen on pursuing an IPO as soon as possible. In November, Reuters reported Friar had told some associates that the company was aiming for a 2027 listing, with some advisers predicting it could come even sooner, around late 2026.

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The company is spending heavily on computing infrastructure. The report noted that OpenAI's cash burn could exceed $200 billion before it reaches positive cash flow. This has added to caution around the timing of the IPO.

OpenAI also plans to spend over $600 billion in the next five years on cloud servers. Friar has warned this could strain the company's finances. She noted that much of the recently announced $122 billion funding comes from Amazon and NVIDIA, which also supply key cloud and chip services. According to the CFO, this mix of funding and suppliers adds financial and operational risks for the company.

While Friar has maintained a cautious stance, reports of internal friction linked to her have also emerged, the Moneycontrol report stated, citing The Information. It noted that at times, she has been excluded from important financial talks, including a meeting with a major investor on server purchases.

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The concerns surrounding the internal operations are also grabbing eyeballs after reports indicated that Friar now reports to Fidji Simo, OpenAI's CEO of AGI development who oversees much of its core business, instead of Altman. This is unusual, as CFOs normally report directly to the CEO, signalling a possible shift in OpenAI's corporate structure. Despite internal differences, Friar and Altman have maintained that they remain aligned on OpenAI's broader computer strategy, The Information report added.