At the Dublin Tech Summit, OpenAI’s CFO Sarah Friar made waves by hinting that the company’s recent shift to a Public Benefit Corporation (PBC) structure could set the stage for a historic initial public offering. Backed by Microsoft’s $13 billion investment and now valued north of $340 billion, OpenAI appears to be threading the needle between purpose and profit with a steady hand, preparing for public markets while staying anchored to its mission.
Redefining the IPO playbook with a hybrid corporate model
OpenAI’s transition from nonprofit to a PBC-centred hybrid model marks one of the most audacious structural shifts in the tech world this year. While not an IPO announcement per se, Friar’s comment, “A PBC gets us to an IPO-able event… if and when we want to”, made it clear: OpenAI is laying the groundwork.
This transformation, which began in December 2024 and was refined in May 2025, reflects a novel approach. The new structure enables the nonprofit parent to retain control via majority ownership while allowing the profit-seeking arm to scale capital acquisition. It’s a delicate balancing act: satisfying investor appetite without compromising the original mission to develop safe and beneficial artificial general intelligence (AGI).
The PBC model is designed for precisely this type of challenge. It provides legal room for leadership to prioritise the public good, even in decisions that might not maximise shareholder value. This governance innovation could be a blueprint for other mission-driven tech firms seeking public capital.
IPO-ready but not rushing to the starting line
While the groundwork is being laid, OpenAI is not signalling immediate IPO intentions. Instead, Friar underscored the importance of strategic timing: “You can show up at the altar all ready to go, and if the market’s not ready for you, you’re just out of luck.” The message is clear — internal readiness must match favourable market winds.
OpenAI’s numbers reflect a company straddling scale and sustainability. Revenues soared to $3.4 billion, even as daily operating costs, reportedly $700,000 for running ChatGPT, keep the company in the red. Still, the company recently closed a $6.5 billion acquisition, which Friar described as “oversubscribed” — a signal of robust investor confidence despite the cash burn.
In many ways, OpenAI mirrors the growth-before-profit trajectory of past tech titans like Amazon and Tesla. For these firms, unprofitability was necessary to scale infrastructure and capture market dominance.
How much could OpenAI be worth?
If OpenAI does go public, the tech and financial worlds will be watching closely, not just for performance but also for precedent.
With 2024 revenues at $3.7 billion and 2025 projections of $12.7 billion, a 243% year-over-year jump, OpenAI’s growth rivals the most ambitious scale-ups in Silicon Valley history. Though profitability remains elusive, the revenue multiple becomes the key valuation metric. Applying sector-relevant multiples to OpenAI’s projected 2025 revenue yields a broad but telling range:
- A conservative 15–20x multiple would value OpenAI at $190–254 billion.
- A moderate 25–30x multiple, aligned with leading AI startups, would value the company at $317–381 billion.
- In a highly bullish scenario, a 35–40x multiple could push the valuation to $444–508 billion, requiring sustained hypergrowth and flawless execution.
These numbers place OpenAI squarely in the conversation with mega-IPOs like Facebook, Alibaba, and Saudi Aramco. SoftBank’s rumoured interest in investing at a $300 billion valuation only sharpens expectations.
But that range isn’t guaranteed. It depends on market sentiment, competitive pressures, and whether OpenAI can maintain its current growth arc while addressing scepticism around profitability and governance.
IPO timing: Opportunity or risk?
The market for tech IPOs remains uneven. While some firms have found solid footing, others have stumbled on post-IPO earnings or valuation resets. For OpenAI, the stakes are higher: this is the face of modern AI.
Friar’s remarks reveal an executive team that understands the nuances of public market readiness. Beyond meeting financial benchmarks, going public means satisfying transparency requirements, managing quarterly expectations, and navigating regulatory crosswinds, particularly as AI ethics and safety are spotlighted globally.
The PBC structure could offer some insulation. By law, PBCs must weigh the public interest alongside shareholder returns, and that legal flexibility might prove invaluable as OpenAI makes decisions around safety, transparency, and competitive restraint.
Still, public markets are famously impatient. Balancing mission with margin will require deft investor relations and flawless execution.
