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OpenAI Investors Push for $1.2T Round as IPO Delays Loom

3 min read
Source: CNBC
OpenAI Investors Push for $1.2T Round as IPO Delays Loom
Photo: CNBC
TL;DR

Investors are proposing a new funding round for OpenAI at a $1.2 trillion valuation, though the company is not actively engaging in talks. This move follows a March raise at $852 billion and precedes a delayed IPO, with Altman citing safety concerns as a reason to postpone public listing until at least 2027.

Key points

  • Investors have approached OpenAI with proposals for a new funding round, valuing the company at approximately $1.2 trillion, according to CNBC and the Financial Times.
  • OpenAI is not currently engaging in formal discussions, and the company declined to comment, per CNBC.
  • The proposed round follows a $122 billion raise in March at an $852 billion valuation and a secondary share sale in August that allowed employees to cash out roughly $7 billion, per CNBC.
  • CEO Sam Altman stated that an IPO is unlikely before 2027, calling the current moment 'ill-advised' due to safety concerns, per CNBC and the Financial Times.
  • OpenAI’s annualized revenue passed $40 billion last month, driven by the launch of GPT-5.6 and Astra, per the Financial Times.
  • The potential round would reassure partners like Oracle and CoreWeave, which have multi-billion-dollar contracts with OpenAI, per Barron’s.

Background

OpenAI confidentially filed its IPO prospectus with the SEC in June but has since pushed back the timeline. The company previously raised $122 billion in March at an $852 billion valuation. Recent model releases, including GPT-5.6 in July and Astra in September, have boosted revenue growth after a slower start to the year.

How outlets are covering it

CNBC and the Financial Times agree that investors initiated the funding discussions, but CNBC emphasizes that OpenAI is not actively engaging, while the Financial Times notes the round could capitalize on renewed demand for its technology. Barron’s focuses on the impact for partners like Oracle and CoreWeave, highlighting how a higher valuation could reassure them despite AI sector volatility. The Financial Times also notes that the round could extend the wait for IPO payouts for longtime backers like SoftBank and Thrive Capital.

Why it matters

A new funding round at a $1.2 trillion valuation could signal strong investor confidence in OpenAI’s technology and financial health, even as the company delays its IPO. It may also reassure partners and investors in the AI infrastructure sector, such as Oracle and CoreWeave, amid concerns about AI safety and market volatility.

What to watch

OpenAI may decide whether to proceed with the funding round based on its IPO timeline and safety concerns. Investors may continue to push for the round, while the company may focus on its delayed IPO and safety initiatives.

Topics:businesstechnology#ai-valuation#ipo-delay#openai#private-funding#sam-altman#technology
Share this article
  1. OpenAI investors have approached the company about a new funding round  CNBC
  2. OpenAI weighs funding round at $1.2tn valuation before IPO  Financial Times
  3. OpenAI Considers New Financing at a $1.5 Trillion Valuation  The New York Times
  4. Oracle, CoreWeave Stocks Face AI Fear. OpenAI $1.2 Trillion Valuation Can Help.  Barron's
  5. OpenAI Weighing Funding Round at Over $1.2 Trillion Valuation  Bloomberg.com

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