OpenAI is targeting an IPO by 2027: details and strategy revealed
OpenAI CFO Sarah Friar has outlined the timeline for the company's stock market debut. According to her, the initial public offering (IPO) is planned for 2027, though the debut could happen earlier under favorable circumstances.
This statement is the most concrete signal from inside the artificial intelligence lab since it filed a confidential S-1 registration with the U.S. Securities and Exchange Commission (SEC) more than two months ago. In June, the company did not specify exact dates and did not rule out remaining private, but now the priorities have become clear.
IPO — Not a Finish Line, but a Tool
Friar emphasized that the share offering is not an end goal, but merely one way to raise capital. In the spring, OpenAI raised $122 billion, which, she said, gives the corporation sufficient flexibility to maneuver. "An IPO is not a finish line but a milestone, just another funding round. In March, we raised $122 billion, which gives us flexibility," she noted. The company's current post-investment valuation stands at $852 billion.
Notably, OpenAI's competitor, Anthropic, has also filed a confidential application and has already held initial meetings with potential investors. A valuation of $2 trillion is being discussed amid a possible fall market debut. Friar urged colleagues not to worry if Anthropic discloses details of its filing first. "It's quite possible they will reveal filing details in the coming weeks and become a public company as early as September. That's fine; we set our own pace," she added.
Financial Metrics and Personnel Changes
The revenue gap between the companies remains significant. Anthropic reported preliminary revenue of $11.5 billion for the second quarter, and by the end of July, its annualized run rate had grown to $65 billion. OpenAI earned $6.7 billion over the same period — 18% more than in the first quarter — and its annualized run rate recently exceeded $40 billion.
According to Friar, OpenAI's revenue has grown 35% since the start of the quarter, with corporate client revenue up 50%. The company's programming and work services are used by 20 million people weekly.
Despite promises of stability, a wave of executive departures has begun at OpenAI: Chief Revenue Officer Denise Dresser, Brad Lightcap, and Head of Product Fidji Simo have left the company.
My take: Friar's statement is a clear signal to the market about OpenAI's maturity as a business. The fact that the company views the IPO as a "milestone" rather than a finish line points to a long-term strategy aimed at scaling. However, the personnel reshuffling amid preparations for the offering is a warning sign that investors should consider when assessing risks.