OpenAI, the company behind ChatGPT, could be heading toward another major increase in valuation as it explores a potential new funding round, even as its plans for a stock market debut remain on hold.
According to a report by the Financial Times, OpenAI is in early discussions with investors about a funding round that could value the artificial intelligence company at approximately $1.2 trillion. The talks are preliminary, and the valuation could change before any transaction is finalised.
If completed at that level, the proposed valuation would represent a substantial increase over OpenAI’s most recent reported valuation.
OpenAI’s Potential Valuation Could Rise 41%
In March, OpenAI reportedly raised $122 billion in a record-setting funding round, giving the company a post-money valuation of approximately $852 billion.
A potential valuation of $1.2 trillion would represent an increase of roughly 41% from that level.
| Valuation | Amount |
|---|---|
| Previous reported post-money valuation | $852 billion |
| Potential new valuation | $1.2 trillion |
| Approximate increase | 41% |
However, the $1.2 trillion figure remains a reported target under discussion and does not represent a completed funding transaction.
OpenAI IPO Plans Remain on Hold
The latest funding discussions come as OpenAI appears to be delaying its plans to go public.
CEO Sam Altman has indicated that the company is unlikely to pursue an initial public offering (IPO) in 2026. He has cited concerns about the risks associated with increasingly powerful AI systems and emphasised the importance of safety and alignment.
OpenAI had reportedly filed IPO paperwork confidentially earlier this year. Based on the developments described in the source report, 2027 is now emerging as a more likely timeline, although no confirmed IPO date has been announced.
Fresh Capital Could Support OpenAI’s Expensive Expansion
A new private funding round could provide OpenAI with additional capital without requiring the company to immediately enter public markets.
Developing increasingly advanced AI models requires significant investment in computing infrastructure, research, and product development. According to the Financial Times, OpenAI spent approximately $34 billion last year, while its annualised revenue crossed $40 billion following the launch of newer products.
The potential fundraise highlights the continued flow of capital into the AI sector, even as investors and analysts raise questions about valuations, infrastructure expenses, and the risks associated with rapid technological development.
OpenAI Faces Growing Competition for Capital
OpenAI is facing intense competition from Anthropic, another major AI company that has attracted significant investor interest and is preparing for a potential public listing.
The rivalry between the two companies extends beyond AI models and customers. Both are also competing for access to the substantial capital required to develop and operate increasingly advanced AI systems.
For OpenAI, another large private funding round could provide additional financial resources for model development and computing infrastructure. It could also give existing and new investors an opportunity to increase their exposure before the company eventually enters public markets.
$1.2 Trillion Figure Is Not Yet Confirmed
The reported $1.2 trillion valuation remains a potential figure rather than a completed transaction. The funding discussions are in their early stages, and there is no confirmed fundraising amount or closing date.
The eventual transition from private-market valuations to public-market scrutiny would represent a significant test for OpenAI. Until then, another private funding round could give the ChatGPT maker additional time and capital to expand its AI operations before seeking a public-market valuation.
