Amid OpenAI’s plans to go public in 2027, a recent hacking incident caused by the company’s AI agent might dent the IPO for the ChatGPT maker.
At an all-hands meeting on Wednesday, CFO Sarah Friar told employees the company will go public in 2027 and possibly sooner, depending on the growth rate. OpenAI had confidentially filed for a US initial public offering with the SEC in June 2026.
However, Alabama’s attorney general said on Monday that the state had opened an investigation into OpenAI after its models hacked open-source platform Hugging Face last month. The state has demanded that OpenAI cease testing activities until the company shows that it can conduct such activities in a controlled way.
The incident occurred in an enclosed digital environment called a ‘sandbox’ where AI agents were being tested for their advanced computer abilities. The space does not have internet access. But OpenAI’s agent found a previously undiscovered vulnerability that allowed it access to a wide internal network. Once it reached a computer with open network access, it lifted the answer key to the test directly from Hugging Face’s database.
The agent went on a days-long hacking spree that OpenAI did not notice for a prolonged period.
The company, along with Hugging Face, has been investigating the incident, and the FBI was alerted. A 14-state coalition, including Alabama, launched the investigation after it sent a letter demanding transparency about the incident to OpenAI earlier this month.
The probe is aimed at finding out if OpenAI violated any consumer protection laws and poses a risk of substantial harm to the citizens of the state.
"This AI lab leak showed that Alabamians' and Americans' worst fears about artificial intelligence are not just theoretical," said Attorney General Steve Marshall.
The development creates uncertainty about OpenAI’s IPO, as clearing the standard SEC review required for the IPO will be complex.
The state’s legal mandate also prevents the testing of its next-generation models, even after the company said it would slow the pace of its model development.
The AI giant is targeting a valuation of up to $1 trillion before its stock market debut. The company is currently valued at $852 billion following a massive $122 billion funding round in March 2026.
CFO Friar mentioned unaudited figures during the meeting, such as a revenue run rate of 35 per cent and a 50 per cent hike in enterprise revenue. However, operating losses have increased from 9.3 billion in the first quarter to 12.3 billion in the second.
