As OpenAI Plans IPO, Altman Reported to Push Company Investment in His Personal Holdings

As OpenAI rushes toward an IPO, conflicts of interest between CEO Sam Altman's personal portfolio and corporate decision-making have resurfaced, sparking internal controversy.

According to The Wall Street Journal, Altman recently requested that OpenAI lead a financing round for nuclear fusion startup Helion, while he is one of its largest shareholders with a significant portion of his personal wealth tied to the company.

At the same time, he also sought OpenAI's support for rocket manufacturer Stoke Space; according to sources familiar with the matter, Altman's personal family fund had previously acquired shares in the company through his husband (Altman is married, partner is male).

These actions have further fueled external skepticism regarding Altman's decision-making motives. OpenAI is currently valued at approximately $850 billion and is preparing for a public listing this year.

Sources indicate that some shareholders have privately discussed whether someone else (Board Chair and former Salesforce Co-CEO Bret Taylor) should take over leadership to guide the company through its IPO.

Shadows of Conflict of Interest Persist

Altman's conflict-of-interest issues are longstanding.

In November 2023, he was briefly ousted from the board, partly because the board deemed his disclosure of personal investments insufficiently transparent, making it impossible to determine if his push for certain transactions served the company's interests.

After returning to his role, the newly formed board announced the creation of an audit committee and established enhanced conflict-of-interest management policies, though specific details were never made public.

Altman's compensation structure at OpenAI is unique.

Since the company originated from a non-profit entity, he has never held direct equity in it, and his 2024 salary was only $66,000. He stated during a 2023 Senate hearing: "I do this because I love it."

Consequently, his wealth accumulation stems primarily from personal holdings in hundreds of startups, on a scale comparable to major venture capital firms, yet these holdings lack the transparency expected of executives at publicly traded companies.

Standard rules for public markets typically require listed companies to limit executives' significant stakes in external enterprises and align executive interests with stock prices through equity incentives.

However, Altman's situation contradicts this norm; his opaque financial status makes it difficult for outsiders to assess how his investments influence his decisions at OpenAI.

Helion Investment Proposal Rejected

Helion is a nuclear fusion startup claiming its technology is close to delivering cheap and abundant energy.

Altman has held shares in the company since 2014, investing $375 million in a single transaction in 2021, which remains his largest personal investment to date.

However, Helion has experienced significant delays in technical progress. The company originally planned for its seventh-generation device, "Polaris," to achieve net power generation in 2024, but failed to meet this target and has not released a revised timeline. Against this backdrop, the company faces tight cash flow and urgently needs new financing.

Altman proposed that OpenAI invest approximately $500 million in Helion, corresponding to a valuation of roughly $35 billion, more than six times the previous valuation of $540 million.

He also approached SoftBank, then negotiating a $40 billion investment with OpenAI, seeking support for Helion. SoftBank CEO Masayoshi Son personally handled the related transaction, surprising some employees at the company.

The proposal faced widespread resistance within OpenAI. According to sources, some employees doubted the feasibility of Helion's technology, and some deliberately avoided Slack channels discussing the potential investment, fearing their comments could later be used as evidence in legal proceedings. Ultimately, OpenAI rejected the investment.

Nevertheless, both parties reached an agreement granting OpenAI the right to purchase up to 50 gigawatts of Helion's electricity before 2035—equivalent to the power output of 25 Hoover Dams. Sources note that Helion has already cited this contract in recent communications with investors to bolster its valuation.

After OpenAI exited the financing round, Helion significantly lowered its targets, planning to raise $250 million at a $15 billion valuation, led by Thrive Capital, another major investor in OpenAI. Altman stepped down from Helion's board last month.

Rocket Company Negotiations Spark Controversy

Stoke Space is a rocket manufacturer aiming directly at Elon Musk's SpaceX. According to sources, Altman's husband holds shares in Stoke Space through the Hydrazine family fund, a financial connection that had never been disclosed prior to this report.

Last summer, Altman proposed to Stoke Space that they collaborate with OpenAI to build data centers in space and explored the possibility of OpenAI acquiring or becoming the controlling shareholder of the company.

Sources indicate that some OpenAI board members were unaware of these discussions and privately harbored doubts about the feasibility of building data centers in space.

However, Altman later characterized the concept of space-based data centers as "absurd" at an event in India, surprising some who were aware of the negotiation details. According to sources, discussions regarding rocket launch cooperation continue into this year, with Altman still expressing interest.

IPO Prospects and Internal Turmoil

OpenAI's leading edge in the AI race is narrowing. On the product front, the video generation app Sora, previously spearheaded by Altman, has been scaled back, and development of ChatGPT's "adult mode" has also been paused.

Chief Product Officer Fidji Simo informed employees last month that the rise of Anthropic should serve as a "wake-up call" for OpenAI, directing resources back toward professional tools for enterprise clients.

Simo went on medical leave this month, creating a leadership vacuum at a critical moment for the company. In her memo to employees, she named four executives to oversee operations, with Altman notably absent. The company stated that he is currently focused on research, fundraising, and securing computing resources.

Altman's own stance on the IPO is intriguing. In a podcast last December, he said: "I have no expectation of being a CEO of a public company, not even a little bit. While I somewhat anticipate OpenAI going public, I also feel it would be very troublesome in some ways."

Amid pressures on valuation, competitive dynamics, and internal governance, the boundary between Altman's personal interests and the company's interests has become an unavoidable core issue on OpenAI's path to an IPO.