OpenAI's Chief Financial Officer, Sarah Friar, informed employees during an all-hands meeting on Wednesday that the company is targeting a public listing in 2027, with the possibility of an earlier debut if business growth continues at its current rapid pace. This was relayed by two individuals familiar with the matter.

"An IPO is not the finish line; it's merely a milestone, another round of financing," Friar told the staff. "We completed our funding round in March, which gives us ample operational flexibility."

In June of this year, OpenAI confidentially submitted its IPO prospectus to the U.S. Securities and Exchange Commission (SEC), though it has not publicly disclosed a specific timeline for the offering. Meanwhile, its primary competitor, Anthropic, has also filed a confidential application with regulators and has initiated preliminary discussions with potential investors to gauge market interest.

During Wednesday's meeting, Friar addressed potential concerns about Anthropic beating OpenAI to the public market. As relayed by the sources, she stated: "As you all know, we are in the confidential filing phase, and so is Anthropic. They may unseal their confidential documents in the coming weeks and complete their listing by September. That's fine. We will move at our own pace."

Ahead of the IPO, OpenAI faces the challenge of justifying its $852 billion valuation to the market, while investors are increasingly eager for greater transparency regarding the company's financial performance.