OpenAI achieves record growth, but no IPO in sight
OpenAI has surpassed one million paying business customers, but the company is still losing money at a significant rate. CFO Sarah Friar says an IPO isn't on the horizon anytime soon.
According to OpenAI, ChatGPT has become the fastest-growing business platform in history. Companies like Cisco, Morgan Stanley, T-Mobile, and Lowe’s are already using the company’s language models, either through ChatGPT for Work or via the API platform.
Roughly seven million employees now use ChatGPT for Work – a 40 percent increase over the past two months. Sales of ChatGPT Enterprise licenses have also increased ninefold compared to last year.
IPO not within reach
Despite the strong growth, OpenAI remains far from profitable. During the Wall Street Journal Tech Live conference, Friar said an IPO is not within reach. The company is prioritizing research and expansion over short-term profits.
Friar added that OpenAI could quickly become break-even if it wanted to but continues to invest heavily. Revenue is projected to hit $13 billion this year, while spending could reach as high as $600 billion on computing resources from Microsoft, Oracle, and Amazon.
OpenAI now operates roughly two gigawatts of computing capacity – about ten times more than in 2023 – and is building its own data centers. Friar suggested that banks, private equity, maybe even governments might play a role in funding these large-scale infrastructure projects. She mentioned that a government "backstop" could help lower borrowing costs and expand the company’s lending capacity.
That single word - "backstop" - sparked speculation that OpenAI was seeking government guarantees for its data center investments.
Friar clarifies: no government guarantee planned
A few hours later, Friar clarified on LinkedIn that OpenAI is not seeking any kind of government backstop for its infrastructure commitments. She admitted her phrasing during the conference had been imprecise. What she meant, Friar explained, was that America's technological strength depends on building industrial capacity - a goal that requires contributions from both private companies and the public sector.
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