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OpenAI Pauses Near-Term IPO Plans to Prioritize Expansion: 2025 Update

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OpenAI Dismisses Near-Term IPO, Focuses on Expansion — 2025 Update

OpenAI’s CFO, Sarah Friar, recently clarified that the company is not planning an initial public offering (IPO) soon, refuting earlier media speculation about a potential market entry by 2026. Speaking at the Wall Street Journal’s Tech Live conference, she emphasized the importance of focusing on scaling the business rather than getting caught up in IPO discussions. This clarification follows a significant restructuring in late October that transitioned OpenAI into a public benefit corporation, enhancing its flexibility while remaining under the oversight of the OpenAI Foundation, which holds a 26% stake. The restructuring aligns with a strategic partnership with Microsoft, valuing OpenAI at approximately $500 billion. OpenAI is actively investing in data infrastructure and has forged multi-billion-dollar partnerships with tech giants like Google and Amazon. Moreover, Friar noted efforts to secure U.S. government support to alleviate financial pressures related to AI chip investments, given their complex funding challenges.

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