From Pymnts · PYMNTS · · 1m 20s
OpenAI seeks $1.2 trillion valuation before going public
The ChatGPT maker is in early talks with investors for a massive funding round ahead of its planned IPO.
In brief
The ChatGPT maker is in early talks with investors for a massive funding round ahead of its planned IPO. OpenAI is pursuing a $1.2 trillion valuation in a pre-IPO funding round, driven by investor interest and the need for capital to fund AI development. Originally reported by Pymnts.
OpenAI eyes massive new valuation
The AI startup is in early talks with investors about a funding round at a $1.2 trillion valuation before its planned IPO.
Investors initiated the talks
OpenAI raised $122 billion at $852 billion in March and filed confidentially for its IPO in June. Investors, not the company, started these new discussions.
New models driving revenue growth
OpenAI hopes to capitalize on demand for GPT-5.6, released in July, and Astra, launched earlier this month.
The company burns billions yearly
OpenAI spent $34 billion last year on AI model training. Revenue hit $40 billion annualized last month after a 20% jump following GPT-5.6's release.
“needs capital”
IPO unlikely before 2027
CEO Sam Altman said the IPO probably won't happen before 2027, calling it an "ill-advised moment" to go public amid AI safety concerns.
Words don't match actions
PYMNTS CEO Karen Webster argues the gap between AI companies' warnings about dangers and their behavior is the most useful data point in the debate.
“The gap between what these companies say and what they do is the most useful data point in this whole debate.”
The headline
OpenAI is pursuing a $1.2 trillion valuation in a pre-IPO funding round, driven by investor interest and the need for capital to fund AI development.
