OpenAI's IPO Path Uncertain as Discrepancies Emerge Between CFO and CEO Amid Rising Costs

OpenAI's Public Listing Plans Uncertain Amid Financial Concerns

Differences have emerged within OpenAI over the timing of a potential public listing, with Chief Financial Officer Sarah Friar cautioning that the company may not be ready to go public before 2026, according to a report by The Information.

Friar has told colleagues that the scale of internal preparation required for an IPO remains substantial, pointing to the heavy procedural, compliance, and organizational work still underway. This includes addressing the company's aggressive spending plans, particularly its large-scale commitments to secure computing infrastructure.

OpenAI's Projected Cash Burn Exceeds $200 Billion

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Those concerns are underscored by the company's projected cash burn, which is expected to exceed $200 billion before it reaches positive cash flow. Additionally, OpenAI has committed more than $600 billion over the next five years toward cloud server capacity, intensifying pressure on its financial position.

| Comparison of OpenAI's Commitments | | --- | --- | | Projected Cash Burn | $200 billion | | Cloud Server Capacity Commitment | $600 billion (over 5 years) |

Friar has flagged the complexity of these commitments, especially as a significant portion of the recently announced $122 billion in funding is expected to come from Amazon and NVIDIA—both of which are also key suppliers of cloud and chip infrastructure to OpenAI. This overlap creates what she views as a potentially risky capital structure.

Internal Friction Over IPO Plans

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Internally, Friar's stance contrasts with that of CEO Sam Altman, who has expressed interest in pursuing an IPO as early as the fourth quarter. However, Friar's more cautious outlook reflects concerns about whether the company can sustainably manage its financial obligations while preparing for public markets.

The Information also reported signs of internal friction, noting that Friar has at times been left out of key financial discussions, including a recent high-level meeting with a major investor on server procurement. Latest reports suggest Friar's reporting line has also shifted—she now reports to Fidji Simo rather than directly to Altman, a move that diverges from typical corporate structures where CFOs report to the CEO.

Despite these differences, both executives have publicly maintained that they are aligned on the company's broader compute strategy, The Information added.