OpenAI CFO Sarah Friar on IPO, AI Rivalries, New Device, and Spending $100B+ on Compute

**Chamath Palihapitiya** (0:00)
OpenAI's CFO Sarah Friar.

**Jason Calacanis** (0:02)
We got to get right to it. You have just completed what I regard as the most successful fundraising round in history.

**Sarah Friar** (0:10)
We're going to raise actually north of $120 billion. We think AI is the biggest era that we've seen to date. We're just starting to understand what it's going to mean for global productivity and with that, hopefully more affluence, better lives for everyone. Luck is whatever the preparation meets opportunity, but you've got to grab it.
Long time listener, first time caller. Quite exciting to get to hang out with all the bros here. Hello.

**David Sacks** (0:39)
We weren't sure how to start this off, but I thought the best thing was to allow our erstwhile cryptosar, to maybe save comments.

**Chamath Palihapitiya** (0:47)
I saw an article today, I think it might have been in the Wall Street Journal, that the perception is that there's an advantage to IPO-ing earlier if you're an AI company. So now we know SpaceX is going, and then the question is, when are OpenAI and Anthropic going to go? I'm curious, how do you think about that? Do you think there is a little bit of a race on, or you haven't made a decision about that yet?

**Sarah Friar** (1:12)
In the end, an IPO, I say this to the team all the time, it's a milestone. It is not a destination.
Do not run your company as if that's some sort of destination. It's just another way to fundraise. We just did, you heard me on the sizzle reel, raise $122 billion in March, and that was to give ourselves maximum flexibility. I feel like my job as a CFO is create optionality for this, not just this company, but just this era that we're living in.

**David Sacks** (1:45)
Was that that point in fundraising, is that the biggest private republic up until the SpaceX IPO?

**Sarah Friar** (1:51)
It is. It is by orders of magnitude. I think the largest IPO to date was the Rosario Romco, which was about $30 billion. It is actually incredible that you're going to have potentially three of yours at a scale that will be bigger even than 2001
That time frame, there was a lot that went on in the market too. But the market has grown. By the way, the other thing going on in the market is like if you look at buybacks, M&A and so on, it's actually a lot of capital keeps being returned back to shareholders and cash. So there is a lot of money sitting on the sidelines. But in the spirit of like the question, David, I think in the end, you will be measured, right?
In the end, the market is a weighing machine, not a popularity machine. No one remembers who went first, Google or Yahoo, Lyft or Uber. And I say that not because whether I want to be first or second, but I just think the press loves a bit of drama. But in the end, we're going to have to build big, sustainable, durable companies. And fundraising will be a key component of doing exactly that.

**Jason Calacanis** (2:53)
Sarah, breaking news.

**Sarah Friar** (2:55)
Oh my God, so many people coming out. Hi Jason.

**Erik Friedberg** (2:57)
I know, it is hard balancing four interviewers at the same time.

**Sarah Friar** (3:01)
It's okay. This is my world by the way, so I'm good with this. Jason.

**Jason Calacanis** (3:05)
Anthropic just confidentially filed their S1. So does that mean you're third place in terms of the filing?

**Sarah Friar** (3:13)
It does not mean anything yet because you have to run now the gauntlet of the SEC and who knows how long that takes for anyone.

**Jason Calacanis** (3:21)
Yeah.
Is there though a benefit to them going forward? And I think unpacking the rivalry with Anthropic is on everybody's minds. So just, I guess you can't talk too much about IPOs, so I'll just pivot to Anthropic was far behind and now they've really, I think everybody would agree in the industry, now blown past OpenAI in terms of developers and corporations and it seems revenue. So did, how did that happen at OpenAI when you had such a tremendous lead? How did Anthropic blow past you guys?

**Sarah Friar** (3:57)
So let's talk a little bit about a strategy. Our strategy is different, right? So we are building the AI layer, the infrastructure and it's really important that there's a single foundation but then with many interfaces out into the world. So ChatGPT is one to the consumer. Over 900 million people use ChatGPT weekly, and it's become the noun and the verb. It's how most people experience AI for the first time. Kind of fun fact, our economic research team just showed me the fastest growing continents now are Africa. Probably not totally surprising since it started as a small base.