OpenAI missed internal targets for user growth and revenue, with ChatGPT failing to reach one billion weekly active users and losing market share to Google Gemini and Anthropic.
CFO Sarah Friar has expressed concerns about the company's ability to afford its $600 billion in computing commitments if revenue growth doesn't accelerate.
Board directors are questioning CEO Sam Altman's aggressive data-center spending strategy amid the business slowdown, creating tension ahead of a potential end-of-year IPO.
OpenAI raised $122 billion but is expected to burn through it in three years, and Friar has flagged that the company lacks internal controls needed for public company standards.
Leadership challenges loom with the second-in-command on medical leave and Elon Musk's ongoing lawsuit seeking to oust Altman and unwind the for-profit conversion.