OpenAI Considered Splitting Robot & Consumer Hardware Divisions Before IPO, Plan Put On Hold

OpenAI CEO Sam Altman discussed splitting the robot and consumer hardware divisions last year to give these businesses more room to grow without dragging down core operations. The plan, which would have allowed new companies to raise external funds and operate independently, was ultimately rejected—partly because OpenAI believed the new entities might still need to be included on its balance sheet.

OpenAI may revisit the split idea in the future, possibly using a holding company structure like Alphabet to separate core business from exploratory projects. Currently, the robot and hardware divisions operate independently and are highly confidential, reporting directly to Altman. Despite raising $122 billion recently, OpenAI missed ChatGPT's revenue and user targets in 2025, sparking concerns about its business sustainability ahead of the IPO.