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Investing.com -- OpenAI’s recent restructuring plans have raised the possibility of a future Initial Public Offering (IPO), according to the company’s Chief Financial Officer, Sarah Friar. However, she emphasized that such a decision would hinge on both the state of public markets and the readiness of the company itself.
OpenAI, which counts Microsoft (NASDAQ:MSFT) as a major investor with over $13 billion invested, announced plans in December to transform its for-profit branch into a public benefit corporation (PBC). This structure aims to balance shareholder returns with societal objectives, differentiating it from nonprofits that focus solely on public good.
Earlier this month, the company revised its plan. The nonprofit parent of OpenAI will maintain control over the PBC and become 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.
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