OpenAI hired an initial public offering (IPO) veteran as its Chief Financial Officer (CFO) as rumors swirled about the company going public.
joins the generative artificial intelligence (AI) software company after leaving social media company NextDoor Holdings (NASDAQ:KIND), where she was CEO.
Friar also has experience at Block (NASDAQ:SQ), Goldman Sachs (NYSE:GS) and McKinsey. OpenAI has been without a CFO since Brad Lightcap moved up to Chief Operating Officer in 2022.
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Does OpenAI Need an IPO?
Since it launched ChatGPT in November 2022, interest in OpenAI has soared. Microsoft (NASDAQ:MSFT) has invested billions in the company. Yesterday, Apple (NASDAQ:AAPL) announced an alliance with it .
However, the company’s higher profile brings new challenges. Tesla (NASDAQ:TSLA) CEO Elon Musk threatened to ban Apple devices from his companies . Publishers continue to threaten suits against the company over its use of their .
In addition to Friar, OpenAI also hired . Weil co-founded a now-defunct cryptocurrency called Libra (and then ) when working at Meta Platforms (NASDAQ:META).
If OpenAI moves toward an IPO, Friar will be . She is a former vice president at Salesforce (NASDAQ:CRM) and sits on the board of Walmart (NYSE:WMT). In the AI space, she serves as co-chair of the .
Despite the company’s denials of an imminent IPO, speculation about one is rising as it through investor cash. It costs $700,000 each day to run ChatGPT, and the company is . An Indian analytics trade magazine recently said that at its current cash burn rate, OpenAI by the end of 2024.
What Happens Next?
Whenever OpenAI decides to go ahead, and regardless of its finances, the IPO will be a major event on Wall Street.
As of this writing, Dana Blankenhorn had a LONG position in MSFT, AAPL, and CRM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
