OpenAI’s CFO, Sarah Friar, has reportedly raised concerns about CEO Sam Altman’s plan to take the company public as early as late 2026. According to a report by The Information, Friar flagged potential risks around the company’s readiness and the scale of its financial commitments, including a proposed $600 billion spending plan over the next five years. While OpenAI’s IPO has been part of the long-term plan, recent developments suggest that leadership is not fully aligned on the timing.
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Earlier this year, reports suggested that OpenAI is preparing for an initial public offering (IPO) as early as the fourth quarter of 2026. More recently, the company raised $122 billion in a funding round, pushing its post-money valuation to $852 billion.
OpenAI’s Financial Risks
The latest reports stated that a key concern for OpenAI’s finance team is the company’s heavy spending. Earlier this year, Friar reportedly told colleagues that she didn’t believe OpenAI would be ready for an IPO in 2026. She cited the organizational and procedural work required, as well as the financial risks tied to the company’s heavy spending commitments. Notably, OpenAI is investing billions in computing infrastructure, which is essential for developing and running advanced AI models. While these investments are crucial for growth, they are also putting significant pressure on the company’s finances.
Internal estimates suggest OpenAI could burn through more than $200 billion before reaching positive cash flow. At the same time, the company has reportedly committed over $600 billion by 2030 to expand cloud server capacity. Adding to these concerns, the report noted that Friar questioned whether such heavy investment in AI servers is necessary and whether the company’s slowing revenue growth would be enough to support these large commitments.
Another challenge for OpenAI is its reliance on Microsoft (MSFT), its biggest partner. While this partnership has helped the company grow quickly, it could become a risk if the terms change in the future.
OpenAI’s IPO Timing Under Scrutiny
By contrast, Altman seems more eager to move fast, with talks pointing to a possible IPO as early as later this year. This difference in approach has put the IPO timeline in the spotlight and exposed internal disagreements in the company. While Friar worry about organizational, procedural, and financial risks, Altman is focused on seizing market momentum and investor interest.
Although OpenAI remains a private company, investors can still monitor its performance and key developments through TipRanks’ Private Companies Center. Below is a screenshot for reference.
