OpenAI weighs funding round at $1.2 trillion valuation

OpenAI has entered early-stage discussions with large investors about a new private funding round that would value the ChatGPT maker at more than $1.2 trillion, according to reports from the Financial Times, Bloomberg, and The Information published on Tuesday.reuters+1

The proposed valuation represents a sharp increase from the $852 billion post-money valuation OpenAI achieved in March, when it raised $122 billion. The talks were initiated by investors, according to Bloomberg, and any decision to proceed will depend on when OpenAI decides to go public.bloomberg+1

A Capital Arms Race

The potential raise comes as OpenAI looks to capitalize on accelerating revenue. The company's annualized revenue surpassed $40 billion last month, a 20 percent sequential surge driven by the rollout of its GPT-5.6 model, the Financial Times reported. That growth offers a financial counterweight to the company's substantial cash burn — OpenAI spent $34 billion last year on training next-generation models.investing+1

Despite confidentially filing an IPO prospectus in June, OpenAI has pushed out its listing timeline. A prolonged stay in the private markets allows longtime backers such as SoftBank and Thrive Capital to expand their equity positions, though it also delays the liquidity event early investors have been anticipating.investing

Competitive Pressure

The fundraising discussions underscore the intense capital race among leading AI companies. Anthropic, OpenAI's chief rival, temporarily gained market share earlier this year and secured a $965 billion post-money valuation. Anthropic is now preparing for an IPO as early as October at a target valuation of $2 trillion, adding urgency to OpenAI's own capital strategy.investing

What Comes Next

The conversations remain preliminary and could change, with the scope and timing of any round still uncertain. Fresh capital would bolster OpenAI's balance sheet as it continues to invest heavily in foundational model development while navigating the path to a public listing that, according to previous statements from CFO Sarah Friar, the company aims to complete in 2027.bloomberg+1