OpenAI Explores Fresh Funding at More Than $1.2 Trillion Valuation Ahead of IPO

OpenAI is in early discussions with investors about another funding round that could value the ChatGPT maker at more than $1.2 trillion, as the company weighs its financing options ahead of a planned initial public offering. 

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The talks were initiated by investors and remain preliminary. Whether OpenAI ultimately moves ahead with the fundraising is expected to depend partly on when it chooses to enter the public market. 

The company’s IPO remains in the works, but is not expected to take place this year. Raising additional private capital could give OpenAI the flexibility to push its listing back by one or two quarters. 

Fresh capital could also support acquisitions 

An additional funding round would give OpenAI more room to pursue mergers and acquisitions, an area where the company has already deployed billions of dollars. 

Its recent purchases include io, the AI device startup founded by former Apple executive Jony Ive, and Astral, which develops Python tools for software developers. 

The company is also examining legal restrictions around the information it may be able to provide to private-market investors as it moves closer to an IPO. 

The discussions come as existing OpenAI backers consider opportunities to increase their exposure before the company reaches the public market. 

Valuation could move OpenAI ahead of Anthropic 

A funding round at more than $1.2 trillion would put OpenAI above the valuation reached by rival Anthropic in its May fundraising. 

Anthropic was valued at $965 billion, including the fresh capital raised in that round. 

The Claude developer is also preparing for a public listing and has selected Nasdaq as its preferred venue. Its IPO could take place as early as October, with the company looking to raise an amount comparable to or larger than SpaceX’s offering. 

SpaceX raised a record $86.3 billion through its IPO in June. 

For OpenAI, however, the immediate question remains whether another private funding round makes sense before its own listing. The talks have yet to result in a final decision, leaving both the size and timing of any potential fundraising open.