OpenAI CFO Sarah Friar has reportedly clashed with CEO Sam Altman over IPO timing, telling colleagues the company is not ready to go public in 2026 due to spending commitment risks and slowing revenue growth. Unusually, Friar no longer reports to Altman — a structural anomaly that investor Paul Kedrosky calls unprecedented for a major pre-IPO tech company. OpenAI's 2025 gross margins also came in below projections due to last-minute compute purchases driven by higher-than-expected demand. The author argues both OpenAI and Anthropic face structurally problematic economics, with CEOs rushing toward IPOs while underlying financials remain shaky.
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