OpenAI's IPO Delayed Until 2027 Amid Internal Dispute
OpenAI has delayed its initial public offering (IPO) until 2027, according to CFO Sarah Friar. This decision follows an internal disagreement between CEO Sam Altman and Friar over the timing of the listing. While Altman had pushed for a later-2024 IPO with a $1 trillion valuation target, Friar argued that OpenAI's business was not yet ready for public scrutiny due to financial transparency requirements. OpenAI reported $6.7 billion in Q2 revenue and an annualized run rate of $40 billion as of mid-year 2023. The company recently completed a funding round at an $852 billion valuation, raising $122 billion in fresh capital—giving it significant financial runway before needing public market support. Meanwhile, rival Anthropic has already filed for its IPO and is growing faster with a higher revenue run rate. The delay allows OpenAI to strengthen its position relative to competitors like Anthropic while avoiding the pressures of premature transparency. Although waiting may be strategic, investors will need more financial details before assessing whether OpenAI's stock would make a good investment upon listing.
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Topics: Anthropic IPO OpenAI revenue growth valuation