AI could be heading for another major valuation jump even as the maker puts its stock market debut on hold.
The company is in early discussions with investors about a potential new funding round that could value it at around $1.2 trillion, the reported. The talks are in the early stages and could still change, but the reported figure would represent a significant increase over OpenAI’s most recent valuation.
In March, raised $122 billion in what was then a record-setting funding round, giving the company a post-money valuation of about $852 billion. A $1.2 trillion valuation would represent an increase of roughly 41% from that level.
The latest discussions also come at an interesting time for OpenAI. 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 posed by increasingly powerful AI systems and said that focusing on safety and alignment is more important at present. OpenAI had confidentially filed IPO paperwork earlier this year, with 2027 now emerging as the more likely timeline.
Fresh capital could help fund OpenAI’s costly expansion
A fresh private fundraise could give OpenAI access to additional capital without requiring the company to immediately enter public markets.
That matters because developing increasingly sophisticated AI models is an expensive business. OpenAI spent about $34 billion last year, according to the Financial Times, while its annualised revenue crossed $40 billion last month following the launch of newer products.
The fundraising discussions also underline the enormous amount of money still flowing into the AI industry despite growing concerns about valuations, infrastructure costs and the risks associated with rapid development.
OpenAI is facing intense competition from Anthropic, which has also attracted substantial investor interest and is preparing for a potential public listing. The rivalry between the two companies has increasingly become a race not only for AI models and customers but also for access to capital.
For OpenAI, another large private round would provide more financial firepower as it continues investing in model development and computing infrastructure. It could also allow existing and new investors to increase their exposure before the company eventually enters public markets.
However, the reported $1.2 trillion figure remains a potential valuation rather than a completed transaction. The discussions are preliminary, and there is no confirmed fundraising size or closing date yet.
The bigger question for investors is what happens when OpenAI eventually moves from private-market valuations to public-market scrutiny. Until then, another private round could give the ChatGPT maker more time—and more capital—to scale its AI ambitions before asking public investors to put a price on the company.