OpenAI Chief Financial Officer Sarah Friar has dismissed Elon Musk’s legal challenge against the company as “lawfare,” accusing him of using the legal system as a competitive tactic, Bloomberg reports.
Speaking at Bloomberg House during the World Economic Forum in Davos on Tuesday, Friar said that OpenAI views Musk’s complaints as a form of competitive maneuvering.
Musk, who founded rival AI company xAI and was previously involved in launching OpenAI as a nonprofit, claims the company has violated its founding mission by shifting to a for-profit structure.
Friar is currently focused on securing funding and creating new revenue streams for OpenAI. She acknowledged that the company will likely need to continue fundraising, and also discussed the pros and cons of a potential public listing.
According to Friar, an initial public offering (IPO) could open doors to new forms of financing, including structured debt, which could lower the company’s cost of capital. This is particularly important given that the development of the next generation of AI models will likely cost billions of dollars.
However, Friar also expressed concerns that going public could force OpenAI to focus on short-term investor demands, potentially hindering its long-term research and development efforts. She emphasized the need to “bring along the right kind of investor” who truly understands the complex and resource-intensive process of developing cutting-edge AI technology.
Despite the challenges, OpenAI is seeing robust adoption of its technology in the enterprise sector. Friar noted that many enterprise clients first encountered OpenAI products in their personal lives before implementing them in their businesses. She stated that the enterprise model is “really building across every sector of the economy.” As an example, she cited Morgan Stanley’s use of OpenAI’s technology in its wealth management and investment banking divisions.
