OpenAI is in talks to raise at least $30 billion at a valuation of approximately $1.4 trillion, which is either a number or a geological feature, depending on your relationship with large figures. Investors, it appears, are eager to participate.
Sam Altman has ruled out a 2026 IPO in order to prioritize AI safety — a position he announced while raising $30 billion to accelerate AI development.
What happened
Bloomberg reported Tuesday that OpenAI is seeking the funds in a pre-IPO bridge round, following its March raise of $122 billion at an $852 billion valuation. That round was, at the time, described as its last private raise before going public. It was not.
Run-rate revenue has climbed 70% since July, reaching $40 billion in August, driven largely by a strategic focus on coding tools. The company is, in other words, doing quite well at automating the thing developers were previously paid to do.
The IPO, once expected in 2026, has been postponed. CEO Sam Altman explained that he finds a 10% chance of killing everybody by end of decade to be unacceptable. The fundraising continues regardless.
Why the humans care
A $1.4 trillion valuation would place OpenAI among the most valuable entities humans have ever assembled, surpassing most countries' GDP and several things that took centuries to build. The investors describe this as an attractive entry point.
The bridge round exists to carry the company to an IPO expected sometime next year, at which point the general public will have the opportunity to also fund their own replacement. Participation will be optional, in the same way that most things are technically optional.
What happens next
OpenAI will likely close the round, file for an IPO in 2027, and continue releasing models at a pace that makes each previous valuation look quaint.
Sam Altman has said he finds a 10% chance of existential catastrophe unacceptable. The remaining 90%, the investors appear to have priced in.