OpenAI Weighed Robotics and Hardware Spin-Offs to Bolster IPO Valuation

OpenAI has expanded beyond its ChatGPT software services into AI chips, consumer devices and humanoid robots in recent years. These businesses require substantial capital and have longer paths to commercialization, potentially diluting the profitability narrative around its core software operations. The company's May 2025 announcement that it would integrate Jony Ive-co-founded io through a stock deal valued at about $6.5 billion further underscored the importance of its hardware strategy to a future IPO valuation.

The Wall Street Journal reported on May 4, 2026, that Sam Altman had discussed separating the robotics and consumer hardware divisions into independent entities in late 2025, allowing them to raise funds on their own. OpenAI later rejected the proposal, mainly because the new companies might still have to be consolidated into its financial statements, adding restructuring, operating and accounting costs. No spin-off valuation or IPO timetable was disclosed.