$1.2 Trillion OpenAI? ChatGPT Maker In Fresh Funding Talks With Investors

OpenAI is in discussions with major investors over a potential new funding round that could value the ChatGPT maker at around $1.2 trillion, the Financial Times reported on Wednesday.

The talks are at an early stage and the valuation could change as negotiations progress, according to the report. The approach was reportedly made by investors rather than OpenAI.

If completed at the reported valuation, the deal would mark a sharp increase from the $852 billion valuation OpenAI secured in its latest funding round in March. The company raised $122 billion in committed capital in that round as it seeks to meet the rapidly rising costs of developing and operating advanced artificial intelligence systems.

The potential $1.2 trillion valuation would represent an increase of about 41 per cent from March and place OpenAI among the world's most highly valued private companies.

OpenAI's rapid expansion has required huge spending on computing capacity, data centres and other infrastructure needed to develop and run increasingly capable AI models. The latest investor interest comes as leading AI companies compete for access to capital and computing resources.

A new private funding round could give OpenAI additional capital while allowing it to remain outside public markets for the time being. The reported funding discussions come days after OpenAI CEO Sam Altman said the company would not go public in 2026.

Altman had earlier ruled out an IPO this year, citing concerns related to AI safety. His comments pushed back against expectations that OpenAI could move towards a stock market listing in the near term.

OpenAI has not ruled out an IPO at a later date. A private funding round could therefore offer the company another way to raise substantial capital without immediately pursuing a public listing.

The reported discussions also highlight the enormous financial requirements of competing at the forefront of the AI industry, where companies are investing heavily in chips, data centres, energy and model development.