OpenAI Targets $30 Billion Funding at $1.4 Trillion Valuation
OpenAI is seeking to raise at least $30 billion from investors in a new funding round that could value the artificial intelligence company at around $1.4 trillion, excluding the capital raised, according to reports. The move comes as the ChatGPT maker has postponed plans for an initial public offering (IPO).
The proposed valuation would put OpenAI above the latest private-market valuation of its long-standing rival Anthropic. OpenAI had previously been considering a funding round at a valuation of about $1.2 trillion, according to reports.
Discussions around the new fundraising effort remain preliminary and could change, the people said, requesting anonymity because the details have not been made public. Investor demand is reportedly helping drive the proposed round.
OpenAI and Anthropic are competing aggressively to expand their enterprise customer bases and increase revenue ahead of potential public-market debuts. Both companies have reportedly submitted confidential documents related to IPO plans, with Anthropic potentially moving toward a public offering as early as this autumn.
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OpenAI CEO Sam Altman recently said the company would not go public this year, citing its focus on AI safety and describing the current environment as an “inopportune time” for an IPO.
The proposed fundraising is expected to serve as a bridge round, providing OpenAI with additional capital while it delays an IPO. In March, the company raised $122 billion in funding at a valuation of $852 billion, according to reports.
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Meanwhile, OpenAI, like other leading AI companies, is facing growing scrutiny over potential risks associated with advanced artificial intelligence, including cybersecurity threats. OpenAI's technologies have been linked to several reported security incidents, including attacks targeting Australian government websites.
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The latest fundraising plans underscore the enormous capital requirements of developing and deploying advanced AI systems as OpenAI continues to expand its technology and commercial operations globally.