Key Highlights

  • OpenAI has undergone nearly half a dozen reorganizations this year, with several senior executives departing as Sam Altman prepares the company for a potential IPO valuing it at as much as $1 trillion
  • The company's chief Revenue officer announced her departure this week, following earlier exits by its former chief financial officer and chief operating officer, and its former ethics chief
  • OpenAI's annualized revenue grew from $24 billion at the end of last year to about $40 billion this month, but the company has been overtaken by Anthropic, whose revenue grew from $9 billion to $47 billion over a similar period
  • OpenAI disbanded its "preparedness" team, which assessed catastrophic AI risks, at the end of last month, reassigning responsibilities to staff working within existing teams

OpenAI Faces Mounting Internal Upheaval Ahead of Potential IPO

OpenAI is facing continued internal upheaval after nearly half a dozen reorganizations this year, as chief executive Sam Altman works to prepare the ChatGPT maker for a potential blockbuster IPO. Repeated executive reshuffles and a series of senior departures have left some staff frustrated with the pace of change at one of the world's most valuable private companies, according to multiple people familiar with the moves.

This week, the company's chief revenue officer, who was appointed in December to lead efforts to win corporate customers, announced her departure. She follows the company's former chief financial officer and chief operating officer, along with its former ethics chief, both of whom left after less than a year in their roles. OpenAI has said it is moving at an exceptional pace and remains willing to make organizational changes as needed.

Senior Departures Reflect Internal Competition for Altman's Attention

Fidji Simo, who ran OpenAI's applications Business and was considered Altman's de facto second-in-command, stepped back from her full-time role last month following a period of medical leave, transitioning to an advisory position. She has reportedly remained active behind the scenes, communicating with staff on a near-daily basis, according to people close to the company, with one person describing senior executives as competing for Altman's attention amid considerable internal politics — a characterization the company disputes, saying Simo is conducting her advisory role as intended.

At the end of last month, OpenAI also disbanded its "preparedness" team, which assessed whether its models could pose severe or catastrophic risks, according to multiple people familiar with the move, reassigning responsibilities for areas such as biological and cyber risk to staff within existing teams. The company has presented these changes as part of a broader streamlining process ahead of a potential IPO, following Altman's directive to staff to focus on ChatGPT and competing with rival AI lab Anthropic for enterprise business.

Revenue Growth Trails Rival Anthropic Despite Recent Acceleration

Since a Leadership crisis in late 2023 that saw Altman briefly ousted, he has built a new executive team around himself, with co-founder Greg Brockman — seen as his most trusted lieutenant — wielding increasing influence as senior departures have created a vacuum. Some staff view the reshuffles as evidence of dysfunction ahead of an expected IPO that could value the company at as much as $1 trillion, an offering that had originally been anticipated this year but is now more likely to occur next year, according to people familiar with the company's plans.

OpenAI's annualized revenue grew from $24 billion at the end of last year to about $40 billion this month, according to people familiar with the matter, with much of that growth attributed to the release of a new flagship model roughly five weeks ago. But the company has been overtaken by rival Anthropic, whose revenue grew roughly fivefold from $9 billion at the end of 2025 to $47 billion in May and has continued on a similar trajectory since, though the companies account for partner revenue differently, complicating direct comparisons. OpenAI recently completed a near-$7 billion tender offer allowing employees to sell shares at the company's current valuation, with some cashing out for upwards of $10 million each. Some investors have expressed concern about the pace of executive turnover, though others characterize the changes as a routine cleanup ahead of a major public listing.