OpenAI seeks funding at $750B valuation
What's the story
OpenAI, the artificial intelligence (AI) company behind ChatGPT, is in early-stage talks with investors to raise tens of billions of dollars at a whopping $750 billion valuation, according to The Information. If these talks are successful, it would mark a significant jump from OpenAI's last reported valuation of $90 billion in October after a deal where current and former employees sold shares worth around $6.6 billion.
Market moves
Potential IPO and funding discussions
Along with the funding talks, Microsoft-backed OpenAI is also preparing for a major initial public offering (IPO). The IPO could see the company's valuation touch as high as $1 trillion. The company has been gearing up to go public and may file with securities regulators in the second half of 2026, according to Reuters. Separately, reports indicate that Amazon is also in talks to invest in OpenAI at a possible valuation exceeding $500 billion.
Growth trajectory
Financial journey and future plans
Over the years, OpenAI has raised billions at ever-increasing valuations. The company is yet to turn a profit but plans to invest significantly in infrastructure for technological advancement. This comes as the AI sector continues to grow rapidly with companies like NVIDIA and Oracle signing multi-billion dollar AI deals with OpenAI this year. However, investors are still cautious looking for signs of cooling demand or underperformance from these hefty investments.