OpenAI Reportedly Seeks $30 Billion at $1.4 Trillion Valuation Ahead of IPO

OpenAI is in talks with investors to raise at least $30 billion at a valuation of approximately $1.4 trillion, according to Bloomberg. The proposed financing would provide another round of private capital ahead of an anticipated stock market debut next year.

The discussions come as the ChatGPT maker reports strong revenue growth following a renewed focus on areas including coding. They also mark a change from earlier expectations that its March fundraising would be its final private round before going public.

The financing remains under discussion. Its size, valuation and completion have not been confirmed.

Proposed Round Would Lift OpenAI’s Valuation Sharply

The reported $1.4 trillion valuation would represent a substantial increase from the $852 billion valuation attached to OpenAI’s March funding round, when the company raised $122 billion.

Based on those figures, the proposed valuation is approximately 64% higher than the March level. That increase would reflect investors’ willingness to assign significantly greater value to the business within a matter of months.

Bloomberg reported that investors are eager to increase their exposure to OpenAI before its expected public listing. A successful deal would give participating investors another opportunity to buy into the company while it remains privately held.

However, a fundraising target is not a completed transaction. The final terms could change as negotiations progress, and the report does not establish that OpenAI has secured commitments for the full amount.

Coding Focus Helps Drive Revenue Growth

OpenAI’s fundraising ambitions follow a sharp increase in its reported revenue run rate.

According to Bloomberg, the company reached a $40 billion run rate in August, representing a 70% increase since July. The report attributed that growth partly to a strategic refocus on key areas such as coding.

Run-rate revenue annualizes revenue generated over a shorter period. It indicates the pace of the business at a particular point in time, rather than revenue already collected over a full year.

The reported acceleration also follows a period when rival Anthropic briefly outpaced OpenAI earlier in the year. OpenAI’s subsequent growth suggests its renewed priorities have strengthened its commercial position, although the supplied report does not provide a detailed breakdown of revenue by product.

For investors considering the proposed round, sustaining that pace of growth will be an important part of assessing the company’s valuation.

IPO Timeline Moves Beyond 2026

OpenAI’s March fundraising had been expected to be its last private capital raise before an IPO. Until recently, that listing was anticipated this year.

CEO Sam Altman has since ruled out a public debut in 2026, saying the company will prioritize AI safety.

Speaking to Fortune, Altman described the prospect of accepting a substantial risk of catastrophic harm from AI as unacceptable. His comments responded to warnings from safety researchers about potential existential threats posed by advanced systems.

The change leaves OpenAI preparing for a longer period as a private company, with a public market debut now anticipated next year.

New Financing Would Bridge the Gap to a Listing

Bloomberg characterized the proposed fundraising as a bridge round ahead of the IPO.

If completed, it would give OpenAI additional capital during the period between its earlier financing and eventual listing. It would also replace the assumption that March’s record-sized raise had closed the company’s private fundraising chapter.

For now, both the financing and public debut remain prospective. OpenAI’s reported revenue growth provides momentum for the discussions, while the revised IPO timetable gives the proposed round its immediate purpose.