OpenAI is under increasing pressure now that internal targets for user growth and revenue have not been met, while infrastructure costs continue to rise. The disappointing performance comes at a sensitive time, as the company is working on a potential IPO later this year.
According to sources within the company who spoke with The Wall Street Journal, Chief Financial Officer Sarah Friar has shared her concerns about the financial sustainability of the current strategy. She reportedly indicated that future commitments for computing power will only remain affordable if revenue grows faster. In doing so, she is questioning the pace at which OpenAI is entering into new contracts for data center capacity.
More critical reflection is also emerging within the board of directors. Board members are reportedly re-evaluating infrastructure investments and questioning whether CEO Sam Altman’s (photo) drive for expansion still aligns with slowing growth. Altman, however, argued that computing power is the primary constraint on growth.
That strategy led to large-scale agreements with suppliers, amounting to hundreds of billions of dollars in commitments. For a long time, that approach seemed justified by the success of ChatGPT, but growth slowed last year. This raised doubts about the investment policy.
OpenAI failed to hit a key internal milestone for weekly users. Revenue also fell short of expectations. Competition played a role in this, particularly from Google’s Gemini. Additionally, the company is grappling with an outflow of paying users.
In segments such as programming tools and business applications, OpenAI lost ground to Anthropic. Earlier this year, this led to the company missing several monthly revenue targets for 2026, according to Bloomberg.
Investors more critical of billions spent on AI
At the same time, doubts are growing outside of OpenAI about the sustainability of the investment wave in AI. Investors are wondering whether the billions spent on data centers and chips will pay off quickly enough, now that growth is leveling off.
OpenAI, however, remains heavily committed to infrastructure. The company is said to have committed to investments totaling more than $1.4 trillion. To finance these ambitions, it is turning to a limited group of investors, with Anthropic also fishing partly from the same pool.
The recent funding round yielded a record amount, but this capital is expected to be largely consumed within a few years due to the high costs of computing power. Part of the funding depends on additional agreements with partners.
Within the company, there is a stronger focus on cost control. Projects that contribute less to core activities are being scaled back, while products such as Codex are being further expanded. This points to an effort to restore the balance between growth and efficiency.
Tensions surrounding investments appear to be affecting preparations for an IPO. Friar reportedly emphasized that OpenAI must first strengthen internal processes before it is ready to meet the demands of the public market. Altman is said to be sticking to a more ambitious timeline.
In addition to financial and strategic issues, OpenAI is also grappling with organizational challenges. For instance, there is reduced continuity in leadership now that Fidji Simo is temporarily absent. Furthermore, legal proceedings initiated by Elon Musk are creating additional uncertainty regarding governance.