OpenAI seeks funding round exceeding $1.2 trillion valuation

A valuation north of $1.2 trillion would represent an increase of roughly 40% from OpenAI's $852 billion valuation in March, highlighting how aggressively private AI valuations keep rising even as questions linger about the sector's near-term ability to generate revenue. The size of the potential raise reinforces the broader AI capital spending and investment cycle that has driven technology sector earnings and stock performance this year, with major investors such as Amazon, Nvidia and SoftBank already on OpenAI's cap table from the March round. A delayed IPO, now anticipated next year instead of this year, removes a near-term public listing catalyst for AI sector sentiment, though it also means private capital continues absorbing most of the funding needs in the meantime. The competitive backdrop, with OpenAI positioning itself against Anthropic and a wave of cheaper Chinese open-weight models, underscores that the AI capital race remains fiercely contested even at the frontier.

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From Monday:

• Nasdaq futures set to open lower as Altman rules out 2026 OpenAI IPO

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OpenAI is in early-stage discussions for a funding round that would put its value above $1.2 trillion, well before an IPO that CEO Sam Altman says won't happen this year.

Summary:

• OpenAI has held preliminary talks with investors about a funding round that could value the company at more than $1.2 trillion, according to the Wall Street Journal (gated), citing a person familiar with the matter
• The company's March valuation of $852 billion came after a $122 billion raise from investors including Amazon, Nvidia and SoftBank
• A new round would come before OpenAI's IPO, now expected next year rather than this year
• OpenAI reports it has surpassed one billion active users, with more than 200 million businesses using its AI models
• Revenue reached $6.7 billion in the quarter ending June, up from $5.7 billion in the first quarter, though the operating margin declined
• CEO Sam Altman told Fortune that going public now would be an "ill-advised moment" given ongoing AI safety concerns

OpenAI has engaged in early conversations with investors about a fresh funding round that could value the ChatGPT developer at more than $1.2 trillion, the Wall Street Journal reported, citing a person familiar with the matter, as the firm continues raising capital ahead of a public listing now expected next year.

Following the release of OpenAI's latest model, these discussions would represent a significant leap from the company's $852 billion valuation in March, when it closed a $122 billion financing round backed by investors such as Amazon, Nvidia and SoftBank. Any new round would come before OpenAI's long-awaited initial public offering, which the company has consistently delayed.

OpenAI faces stiff competition for position at the frontier of artificial intelligence development, contending with Anthropic as well as fresh competitive pressure from a wave of lower-cost Chinese open-weight models. The company reports it has surpassed one billion active users since its March raise, with more than 200 million businesses now employing its AI models. Its coding tool, Codex, has also experienced strong growth, and the firm recently launched a new model called Astra, described as its most intelligent and aligned to date.

On the financial side, OpenAI's revenue increased to $6.7 billion in the three months ending June, up from $5.7 billion in the first quarter. However, its operating margin shrank over the same period, delaying the prospect of profitability ahead of any public listing.

In an interview with Fortune this month, Altman stated OpenAI was unlikely to go public this year, citing AI safety concerns as the reason for the delay. He called the current environment an "ill-advised moment to go public," adding that the company feels no pressure to expedite a listing. The Financial Times had previously reported on OpenAI's fundraising efforts, and the Journal's report adds further detail on the potential valuation size.