OpenAI is seeking to raise at least $30 billion in funding at a $1.4 trillion valuation as it delays its IPO plans due to security concerns.
OpenAI is exploring a significant funding opportunity, seeking to raise at least $30 billion at a valuation of around $1.4 trillion, according to early-stage discussions with investors reported by Bloomberg. The negotiations are still developing, indicating that the terms may evolve.
This funding initiative aims to strengthen OpenAI's financial foundation following a strategic shift away from its plans for an initial public offering (IPO). Bloomberg highlights that some investors have shown interest in this funding round directly.
While OpenAI has not officially confirmed the funding amount or its valuation, the company has not responded to inquiries from Reuters regarding the matter.
If the discussions lead to a successful agreement, OpenAI's valuation would significantly exceed the $110 billion recorded during its funding round in February, which had previously set the company's worth at $730 billion. Major investors in that round included Amazon, Nvidia, and SoftBank, with contributions of $50 billion and $30 billion, respectively.
As of March 31, OpenAI reported $122 billion in confirmed investor commitments at a valuation of $852 billion after securing funding.
The timing of these discussions aligns with OpenAI's rapid growth, with reports indicating the company is on track for an annual revenue exceeding $40 billion. By late September, estimates suggested that revenue could approach $70 billion, according to sources from Reuters.
Since the beginning of the third quarter, OpenAI's annual revenue growth rate has increased by over 70%, with corporate sales doubling since July. Notably, the consumer segment has generated more revenue in the third quarter than throughout all of 2025.
IPO Delay Due to Security Issues
The potential funding round comes after CEO Sam Altman announced that OpenAI would not pursue an IPO in 2026. He cited security concerns and the necessity for further development on the reliability of advanced model behaviors as factors influencing this decision.
During the DevDay event on September 29, Altman reiterated that the timeline for a public offering is closely linked to addressing these security issues, emphasizing the importance of being able to assure the safety of their models before considering going public. However, he acknowledged that postponing the IPO indefinitely is not an ideal scenario.
In September, OpenAI also decided against the public release of GPT-6.1 Astra due to declining safety metrics and concerns regarding user intent.
