OpenAI in talks to raise $30 billion at $1.4 trillion valuation ahead of delayed IPO
Quick Look
- OpenAI is negotiating with investors to raise at least $30 billion in a pre-IPO funding round at a valuation of roughly $1.4 trillion, according to Bloomberg.
- The company previously raised $122 billion in March at an $852 billion valuation.
- CEO Sam Altman has ruled out a public debut in 2026 to prioritize AI safety, citing existential risks.
AI-generated summary
Why It Matters
OpenAI previously raised $122 billion in March at an $852 billion valuation, which was expected to be its last private round before an IPO. Anthropic briefly outpaced OpenAI early in the year, but OpenAI's strategic focus on coding has driven a 70% jump in run-rate revenue since July, reaching $40 billion in August.
OpenAI is in talks with investors to raise at least $30 billion in a pre-IPO funding round at a valuation of roughly $1.4 trillion, Bloomberg reported on Tuesday.
Investors are eager to pour more funds into the ChatGPT maker ahead of its anticipated public market debut next year. While Anthropic momentarily outpaced OpenAI at the start of the year, recent strategic refocus on key areas like coding has fueled a 70% jump in run-rate revenue since July, reaching $40 billion in August, according to the report.
The company previously raised $122 billion in March at an $852 billion valuation. That funding round was supposed to be its last private raise before an IPO, which had been, until recently, expected to take place this year. However, CEO Sam Altman has now ruled out a public debut in 2026 to prioritize AI safety first.
“I think it is unacceptable to be taking like a 10% chance of killing everybody by the end of the decade,” he recently told Fortune, in response to warnings from safety researchers about AI posing an existential risk to humanity.
The new fundraising, if it transpires, will serve as a bridge round to the IPO, according to Bloomberg.
OpenAI didn’t respond to TechCrunch’s request for comment.
What to Watch
AI outlook — possibilities, not facts
OpenAI will proceed with an IPO in 2027 or later
Likely · Within years
OpenAI's run-rate revenue will exceed $50 billion by end of 2026
Possible · Within years
Open Questions
- Which specific investors are participating in the new funding round?
- What exact percentage of OpenAI is being offered in the pre-IPO round?
- What specific AI safety measures will OpenAI prioritize before pursuing an IPO?
- How will the delayed IPO timeline affect OpenAI's competition with Anthropic and other AI firms?
