The ChatGPT maker is in preliminary talks to raise up to $100 billion, marking a 50% jump from its October valuation and setting the stage for what could be the largest tech IPO in history.
OpenAI, the artificial intelligence company behind ChatGPT, has entered early discussions with investors about raising tens of billions of dollars at a valuation of approximately $750 billion, according to three people with knowledge of the discussions.
The ChatGPT maker could raise as much as $100 billion in the funding round, which would represent a staggering 50% increase from the company's $500 billion valuation established just two months ago.
The discussions remain preliminary, and details could still change, The Information reported. OpenAI declined to comment on the report.
Valuation Surge Continues
If finalized, the funding talks would represent a roughly 50% jump from OpenAI's reported $500 billion valuation in October, following a deal in which current and former employees sold about $6.6 billion worth of shares.
That October share sale propelled the ChatGPT owner past Elon Musk's SpaceX to become the world's largest startup. Investors in that transaction included SoftBank Group, Thrive Capital, Dragoneer Investment Group, Abu Dhabi-backed MGX, and T. Rowe Price.
Amazon Talks Add Another Dimension
The new fundraising discussions come on the heels of separate negotiations with Amazon. OpenAI is in discussions with Amazon about a potential $10 billion investment and an agreement to use its artificial intelligence chips.
The deal under discussion could value OpenAI north of $500 billion and see it adopt Amazon's Trainium chip, according to Bloomberg, citing sources familiar with the negotiations.
The two companies are also in talks about the possibility of OpenAI helping Amazon with its online marketplace, similar to deals OpenAI has struck with Etsy, Shopify, and Instacart.
The Amazon investment would follow OpenAI's completion of a restructuring in October that formally outlined the details of its partnership with Microsoft, giving it more freedom to raise capital and partner with companies across the broader AI ecosystem.
Road to a Historic IPO
Beyond these private funding rounds, OpenAI is laying the groundwork for what could become one of the largest initial public offerings in history. Chief Financial Officer Sarah Friar has told associates that OpenAI is targeting a 2027 listing, though some advisers believe the IPO could come sooner—possibly in late 2026.
In preliminary discussions, the company has considered raising $60 billion at the low end, and possibly more, which would value the company at up to $1 trillion.
CEO Sam Altman has acknowledged the company's trajectory toward public markets. "I think it's fair to say it is the most likely path for us, given the capital needs that we'll have," he said during a livestream in October.
An OpenAI spokesperson pushed back on the IPO reports, telling Reuters: "An IPO is not our focus, so we could not possibly have set a date. We are building a durable business and advancing our mission so everyone benefits from AGI."
Massive Infrastructure Commitments
The aggressive fundraising reflects OpenAI's enormous capital requirements. OpenAI has made more than $1.4 trillion of infrastructure commitments in recent months, including agreements with Oracle, Nvidia, Advanced Micro Devices, and Broadcom.
Last month, OpenAI signed a deal to buy $38 billion worth of capacity from AWS, its first major contract with the cloud infrastructure leader.
Altman noted at a recent event that the company plans to spend $1.4 trillion on AI infrastructure. The company's annualized revenue is projected to reach $20 billion by year-end, though losses continue to mount as it scales operations.
The potential funding comes as competition in the AI sector intensifies. Amazon has invested at least $8 billion into OpenAI rival Anthropic, but the e-commerce giant could be looking to expand its exposure to the booming generative AI market. Microsoft has taken a similar step and announced last month that it will invest up to $5 billion in Anthropic.
For OpenAI, a deal with Amazon would mark another step toward diversification after years of deep alignment with Microsoft, which has invested more than $13 billion in the company since 2019.
