OpenAI is reportedly in talks 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 move comes as the ChatGPT maker prepares for a public market debut next year, though CEO Sam Altman has pushed back the timeline.
Investors are eager to pump more money into OpenAI ahead of its anticipated stock offering. The company has already raised $122 billion in March at an $852 billion valuation, a funding round that was supposed to be its last private raise before an IPO. That IPO had been expected to happen this year, but Altman has now ruled out a public debut in 2026 to focus on AI safety first.
Revenue Since July
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. That surge follows a period earlier this year when Anthropic briefly outpaced OpenAI in the market.
OpenAI didn’t respond to TechCrunch‘s request for comment.
What the Valuation Means
A $1.4 trillion valuation puts OpenAI far beyond the usual scale for a startup. The new fundraising, if it transpires, will serve as a bridge round to the IPO, according to Bloomberg. That means the money is meant to carry the company through to its eventual stock offering, rather than being the final round before it goes public.
Safety First
Altman’s decision to delay the IPO stems from concerns about AI safety. He has publicly warned that the technology poses an existential risk to humanity, and he wants to address those risks before the company opens its stock to public trading.
“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.
That warning came directly from Altman himself. It reflects his stated view that the stakes around AI development are very high, and that the company should not rush toward a public listing until it has done more work on the underlying safety challenges.
The Funding Round
The irony is that a company whose CEO says a 10% chance of killing everybody by the end of the decade is unacceptable is raising $30 billion at a $1.4 trillion valuation. The funding round is designed to bridge the gap between now and the eventual IPO, but it also underscores how quickly OpenAI has grown.
Run-rate revenue has jumped 70% to reach $40 billion in August. That growth is the engine behind the fundraising.
What Happens Next
The funding round remains in talks, and the details could still shift before a deal closes. If the round happens, it will be a massive private fundraising effort.
The IPO is now expected to take place sometime after 2026, though no exact date has been set.
The Order of Events
Here’s how the timeline breaks down:
- OpenAI raises $122 billion in March at an $852 billion valuation.
- Altman rules out an IPO in 2026 to prioritize AI safety.
- Run-rate revenue jumps 70% to $40 billion in August.
- OpenAI enters talks to raise at least $30 billion at a $1.4 trillion valuation.
- The IPO is now expected sometime after 2026.
The Bottom Line
OpenAI is betting big on its future. The $1.4 trillion valuation reflects confidence in the company’s position, even as its CEO warns about the dangers of the technology.
The funding round, if completed, will give OpenAI the cash it needs to weather any delays.
Source material: “OpenAI repotedly in talks to raise $30B round at $1.4T valuation,” TechCrunch.
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