05:32 AM EDT, 05/05/2026 (MT Newswires) -- Microsoft-backed (MSFT) OpenAI Chief Executive Sam Altman discussed spinning off the startup's robotics and consumer-hardware divisions late in 2025, The Wall Street Journal reported Monday, citing unnamed people familiar with the matter.

The two separate entities would have been able to raise external financing and operate with more independence, but the plan was rejected because OpenAI concluded the new firms may have to remain consolidated on its balance sheet, the people told the news outlet.

The spinoff proposal provides a window into the trade-offs the startup has to make as it moves toward an initial public offering, according to the WSJ.

OpenAI could work again on the plan to spin off different business lines in the future, the source told the Journal. The plan may be similar to Alphabet's (GOOG, GOOGL) creation of a holding company, which Google did in 2015 to separate its core search operations.

OpenAI's robotics and consumer-hardware divisions operate separately from the rest of the company, as some employees have labelled them as separate startups within the firm, the WSJ said.

OpenAI did not immediately respond to MT Newswires'request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)