OpenAI’s ongoing corporate restructuring could lay the foundation for a potential initial public offering (IPO), though no firm plans have been made. CFO Sarah Friar noted at the Dublin Tech Summit that going public is a possibility, but emphasized that the company must be internally prepared and the broader market must be favorable before taking that step.
OpenAI, which counts Microsoft (NASDAQ:MSFT) as a major investor with over $13 billion invested, announced plans in December for a shift to a public benefit corporation (PBC) model—blending profit goals with public interest. Under revised plans, the nonprofit parent retains control, while the for-profit arm seeks to attract new investment.
Earlier this month, the company revised its plan. The nonprofit parent of OpenAI will maintain control over the PBC, becoming a significant shareholder, while still allowing the for-profit arm to attract more capital to stay competitive in the AI sector.
Friar, speaking at the Dublin Tech Summit, explained that becoming a PBC could lead to an IPO if the company chooses to go that route. However, she was quick to clarify her statement, insisting that she was not announcing that OpenAI would definitely go public, but rather that it was a possibility.
When questioned about what it would take for OpenAI to pursue an IPO, Friar stated that a company needs two things to consider an IPO: readiness of the company and favorable market conditions. She underscored the importance of building a company that can remain sustainable and secure irrespective of the state of public markets.
Friar also noted that having some level of predictability is crucial for a company to go public.