OpenAI has dropped plans to spin off its robotics and consumer hardware divisions into standalone entities, a move originally floated by CEO Sam Altman to give those fast-growing units more independence and clearer capital-raising paths. The decision comes as the AI giant targets a public listing later in 2026, with a potential valuation of up to $1 trillion and fundraising ambitions starting at $60 billion.
The Wall Street Journal reported that Altman discussed the restructuring late last year, aiming to mimic Alphabet’s structure. However, lawyers and finance teams concluded the new businesses would still need to be consolidated on OpenAI’s financial statements, rendering the breakup ineffective for accounting purposes. OpenAI would have faced the operational complexity of a carve-out without the cleaner financial picture that investors and underwriters want ahead of an IPO.
The spinoff idea was prompted by OpenAI’s rapid expansion beyond chatbots. In 2025, it acquired io Products, the startup of former Apple designer Jony Ive, for $6.5 billion in an all-stock deal, with Ive joining as creative head to develop AI-native consumer devices. OpenAI is also collaborating with Broadcom to build 10 gigawatts of custom AI accelerators, and it has invested in robotics startups Figure and 1X Technologies while supplying specialized AI models to Figure.
Meanwhile, OpenAI is under pressure to streamline operations for its IPO, having missed internal revenue targets earlier this year after losing ground to rival Anthropic in coding and enterprise markets. CFO Sarah Friar has warned that the company may struggle to meet future computing commitments if revenue does not improve quickly. OpenAI’s decision to shelve the spinoff underscores its focus on presenting a unified financial story to public markets.
Anthropic is also preparing for a public debut, hiring law firm Wilson Sonsini and reportedly raising around $50 billion at a valuation that could reach $900 billion pre-IPO, with investor demand potentially pushing it toward a $1 trillion valuation.
