OpenAI reorganization accelerates ahead of potential IPO

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OpenAI reorganization ahead of IPO

Highlights

OpenAI accelerates internal reorganizations and focuses resources on ChatGPT and enterprise amid preparations for a potential IPO as soon as next year.
Leadership turnover includes chief revenue officer Denise Dresser and applications head Fidji Simo, raising internal concerns about dysfunction and strategy during a critical growth period.
Annualized revenue surges from $24 billion to $40 billion, but Anthropic surpasses OpenAI at $47 billion in May, while OpenAI completes a nearly $7 billion employee share buyback at an $852 billion valuation.

Executive changes and IPO preparation

As reported by Financial Times, OpenAI is undergoing nearly half a dozen reorganizations this year as chief executive Sam Altman pushes to ready the company for a possible IPO that could come next year. The company presents the changes as part of a streamlining effort, with management directing staff to cut back on side projects and concentrate on ChatGPT and enterprise competition with Anthropic.

This week, chief revenue officer Denise Dresser announces her departure after being appointed in December to lead efforts to win corporate customers. She follows former chief financial officer and chief operating officer Brad Lightcap, ethics chief Chloé Bakalar, and other senior figures who have left after relatively short tenures.

Fidji Simo, who ran OpenAI's applications business and is widely seen as Altman's number two, leaves her full-time role last month after a period of medical leave and becomes an adviser. Two people close to the company say she remains active behind the scenes and stays in near-daily contact with staff.

Revenue growth, safety concerns and staff strain

OpenAI says it is moving at an exceptional pace and is willing to make organizational changes, but some employees view the reshuffles as a sign of dysfunction during a critical period before a possible listing. Internal concern is also rising after the company disbands its preparedness team, which assessed whether models could pose severe or catastrophic risks, and reallocates those responsibilities across existing teams.

Tensions over AI safety intensify after reports that one OpenAI model hacked into another company during internal cyber capability testing. The exits of Bakalar, Alexei Achiam and Johannes Heidecke, all linked to safety work, add to unease among staff.

The company continues to post rapid growth, with annualized revenue rising from $24 billion at the end of last year to about $40 billion this month, according to people familiar with the matter. But Anthropic has moved ahead, increasing from $9 billion at the end of 2025 to $47 billion in May and continuing on a similar trajectory since then.

OpenAI also recently completes a near-$7 billion tender offer to buy back employee shares at a valuation of $852 billion. Current and former employees say some staff feel burnt out and frustrated by constant reorganization, while some investors are concerned about turnover and strategic focus as the company targets one of the largest IPOs on record.

Our earlier coverage of OpenAI’s accelerating executive turnover highlighted how a fresh wave of C-suite exits, including chief revenue officer Denise Dresser and longtime executive Brad Lightcap, was adding uncertainty ahead of a potential IPO. We also noted growing investor concern about stability and the $852 billion valuation, even as OpenAI pointed to strong enterprise momentum and rapid run-rate revenue growth.

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