Investors Float $1.2 Trillion Valuation for OpenAI Ahead of Delayed IPO

OpenAI has reportedly engaged in preliminary discussions with investors regarding a private fundraising round that could value the company at $1.2 trillion, occurring before a public listing that Sam Altman has now postponed beyond 2026.

The discussions were initiated by investors rather than the company itself, and the valuation figure may change in the coming months. The timing largely depends on when OpenAI decides to go public.

OpenAI Valuation Talk Jumps to $1.2 Trillion From $852 Billion in March

In March, OpenAI raised $122 billion at an $852 billion valuation. A $1.2 trillion valuation would represent an increase of roughly 41% from that level.

According to the Financial Times, the talks are still in early stages, and sources indicated the figure could change. No specific round size or lead investor has been identified yet.

The company confidentially filed its initial public offering prospectus in June. Earlier, Chief Financial Officer Sarah Friar had indicated a 2027 timeline to staff, with the possibility of an earlier date.

But last week, Chief Executive Sam Altman ruled out a 2026 listing, citing ongoing safety work that still needs to be completed.

“I would say not 2026. Yeah, we got a lot of stuff to do, like meeting this moment of what is going to be required for safety and alignment, and how the industry and governments can work together,” Altman told Fortune.

Altman said that given the safety considerations, the current period would be an “ill-advised moment” to become a public company. He added that OpenAI does not feel pressured on that front.

This comes amid ongoing concerns about the speed of AI development. Many have warned that the technology could have severe consequences for humanity.

The Revenue Gap Anthropic Opened Has Not Closed

OpenAI spent $34 billion last year training its models, though it says the March fundraising left it with sufficient resources. Still, the company does not expect to achieve profitability until 2030.

Annualized revenue surpassed $40 billion last month following a 20% increase. Anthropic continues to lead the way. Its run rate hit $65 billion in July, and it surpassed OpenAI in valuation at $965 billion post-money.

Bankers have also been pushing for investment-grade credit ratings for both labs, a development that would expand the pool of debt investors available to them.