OpenAI's chief financial officer Sarah Friar told employees at an all-hands meeting on Wednesday that the artificial intelligence company is set to become a publicly traded entity in 2027, adding that an earlier market debut remains possible if business growth continues to accelerate, according to reports. Two people familiar with the matter who requested anonymity because they were not authorized to speak publicly said Friar told staff that the IPO is not a finish line but rather a significant milestone and a fresh fundraising opportunity, noting that the company secured $122 billion in March which provides substantial flexibility.

In June, OpenAI confidentially filed its IPO paperwork with the U.S. Securities and Exchange Commission without disclosing a specific timeline for going public. At that time, the company issued a statement saying it recently submitted a confidential S-1 filing and expected it would eventually leak, so it chose to disclose the information proactively. The company emphasized that no decision on timing had been made and that it might take considerable time because certain initiatives are easier to accomplish while remaining privately held.

Where things stand

Reports indicate that Anthropic, OpenAI's primary rival, is also advancing its own listing process and could potentially lift the veil on its filing within the coming weeks. Friar reassured employees that Anthropic beating OpenAI to the public market would not be a cause for concern. She acknowledged that both companies are in the confidential filing phase and that Anthropic might reveal its documents and go public in September, but stressed that OpenAI is following its own timeline.

Anthropic has already submitted its prospectus to regulators on a confidential basis and has held preliminary discussions with potential investors. Should the company list in September, it would become one of the first major players in the AI race to reach the public markets.

Growth metrics and financial snapshot

During the employee meeting, Friar presented slides showing OpenAI's revenue run rate growing 35% quarter-to-date, enterprise revenue run rate up 50%, and weekly active users for AI coding and work products reaching 20 million. Earlier reports indicated that OpenAI generated second-quarter revenue of $6.7 billion, an 18% increase from the $5.7 billion recorded in the first quarter. The company's annualized revenue run rate recently surpassed $40 billion, although it has yet to achieve profitability.

Anthropic's growth trajectory appears even more aggressive. The company informed investors over the weekend that its annualized revenue run rate reached $65 billion by the end of July, representing a sevenfold increase from a year earlier. Preliminary second-quarter revenue stood at approximately $11.5 billion, more than doubling year-over-year, with the company achieving a modest operating profit.

OpenAI now faces pressure to justify its $852 billion valuation. As the IPO approaches, investors are seeking more detailed financial disclosures, while concerns mount over the rapid ascent of competitors, the proliferation of low-cost open-source weight models, and volatility in SpaceX's stock following its public listing. OpenAI declined to comment on the reported financial figures, and Anthropic did not immediately respond to requests for comment.

Executive departures draw scrutiny

Friar's remarks at the all-hands meeting come amid a wave of executive departures at OpenAI. Last week, revenue head Denise Dresser left the company after just eight months in the role. Two days prior, longtime executive Brad Lightcap announced the conclusion of his eight-year tenure at OpenAI, stating he would be pursuing new endeavors. In July, product business lead Fidji Simo also stepped down to focus on chronic disease recovery. These changes have left some financial backers uneasy about the stability of the company's senior leadership.

Remaining executives, including Friar, CEO Sam Altman, and president Greg Brockman, now face the task of projecting stability to the outside world. Brockman downplayed the impact of the executive departures during an interview on Monday, expressing that he does not view the personnel changes as particularly unusual. He noted that the difference between OpenAI and other organizations lies in the level of public scrutiny, where every departure receives outsized attention compared to what would occur at other companies.