Sam Altman is growing tired of the criticism and would prefer OpenAI to be a public company, which would allow them to financially support their detractors' viewpoints.
TL;DR
- Sam Altman wishes OpenAI were public to financially support critics who doubt its success.
- Altman stated he would "love to see them get burned" if critics shorted OpenAI's stock.
- OpenAI's valuation reached $500 billion after a recent secondary share sale.
- Altman expressed uncertainty about an IPO timeline, despite reports of a $1 trillion IPO.
The CEO quickly became defensive when BG2 podcast host and Altimeter Capital founder Brad Gerstner asked about OpenAI’s reported $13 billion in revenue—a respectable figure about equal to that of Dick’s While Sporting Goods is a factor, it's dwarfed by the $1.4 trillion OpenAI's commitment to upgrading its computing infrastructure.
We're actually generating significantly more revenue than that. Furthermore, Brad, should you wish to divest your shares, I'll secure a buyer for you, Altman stated. I've had enough. Many individuals would be eager to purchase stock in OpenAI.
He forecasted a sharp increase in revenue, continued expansion for ChatGPT, and significant success for OpenAI's upcoming consumer device business.
“I think we could sell, you know, your shares or anybody else’s to some of the people who are making the most noise on Twitter, whatever, about this very quickly,” Altman said.
Despite not being a publicly traded entity, OpenAI has a substantial roster of institutional investors who hold private stakes in the company. Gerstner's Altimeter Capital also participated, contributing an undisclosed sum during last year's funding round, which raised $6.6 billion and pegged the company's valuation at $157 billion. Following a secondary share sale for its current and former employees last month, OpenAI's valuation has reached $500 billion.
Altman also said that there are “not many times” he wishes OpenAI were a public company, but he highlighted one particular benefit of having publicly traded shares.
It's appealing on rare occasions when those individuals pen absurd claims like "OpenAI is on the verge of collapse." I'd be thrilled to suggest they simply short the stock and witness their outcome. "I'm burned by that," he stated.
OpenAI offered no immediate response to Fortune’s query for a statement.
The chief executive of OpenAI is recognized for his unwillingness to retreat from disputes. Over the weekend, OpenAI cofounder and Tesla CEO Elon Musk took shots at Altman, alleging he “stole a nonprofit.” Altman responded, “I helped turn the thing you left for dead into what should be the largest "the most impactful nonprofit ever."
Although Altman has sometimes expressed a desire for OpenAI to be a publicly traded company, the AI leader currently has no definite plans for an initial public offering. The company, which was founded as a nonprofit, restructured as a for-profit public benefit corporation, or PBC, last week. This relocation is intended to facilitate fundraising efforts and may open doors for a future public stock offering.
Sam Altman has expressed uncertainty regarding when OpenAI might become a publicly traded company. Altman stated on the podcast that there's no concrete plan, despite a report from Reuters last week suggesting the company was gearing up for a $1 trillion IPO in 2026 or 2027.
He did, however, concede that the ultimate aim is an initial public offering.
I'm a pragmatist. Altman commented on the Reuters report, stating, "I assume it will happen someday, but that was—I don’t know why people write these reports." No specific date has been set. There's no board decision that led to this action, nor any similar directive. I'm just guessing that's where things will end up.”