Nextdoor Exit to OpenAI: The CFO Managing AI’s Money Fire

OpenAI CFO Sarah Friar made headlines yesterday after suggesting the federal government could provide a "backstop" for AI infrastructure financing to lower costs—a remark she later walked back. This controversy places her career, marked by a skill for translating ambitious startup visions for investors, in the spotlight as she manages the capital-intensive race for AI dominance.

With the help of our Deep Research tool, we've identified some key moments in her career:

• OpenAI: Since joining as CFO in June 2024, Friar has been tasked with bringing financial discipline to the cash-burning AI leader.
• Focus: Managing a massive $6.5 billion fundraising effort to cover computing and talent costs.
• Investor Pitch: Polished the presentation to highlight historic revenue growth, drawing comparisons to the early days of Google and Facebook.
• Deal Structure: Instrumental in structuring the fundraising deal, including a provision for investors to claw back money with interest if the company fails to convert to a for-profit entity within two years.
• Nextdoor: In February 2024, she stepped down as the CEO of Nextdoor after more than five years. Her departure followed the company's struggles with anemic growth and a steady cash burn after its 2021 SPAC merger.
• Stock Performance: Nextdoor went public via SPAC in November 2021 with an initial reference price of $10.00 per share. By the time Friar stepped down as CEO in February 2024, the stock was trading around $2.00 per share.
• Square: Previously, Friar was the CFO at Square (now Block), where she was widely credited as the "grownup" who helped make Jack Dorsey's fintech company presentable to Wall Street. She successfully navigated a pre-IPO funding round and was instrumental in shepherding Square through its 2015 initial public offering.

Friar's history as a finance leader provides necessary context for her new role at OpenAI. As her recent "backstop" comments show, her challenge is navigating the immense financial and political risks of the AI race. The Information is actively covering these moves to keep our readers on top of the most critical developments in the industry.