OpenAI is in discussions to raise up to $100 billion in new funding, a move that could value the AI company at $750 billion or more, according to people familiar with the talks.
The conversations involve a mix of existing partners and new backers, including major technology firms and Middle Eastern sovereign wealth funds. While the final amount has not been set, the scale alone would mark one of the largest private fundraising efforts in history.
OpenAI is already among the world’s most valuable private companies, despite remaining unprofitable. The company generated roughly $13 billion in revenue last year, largely from subscriptions and enterprise services, but it is spending aggressively to secure the computing power required to train and deploy advanced AI systems.
Executives have committed to hundreds of billions of dollars in long-term infrastructure investments, reflecting the immense cost of competing at the cutting edge of artificial intelligence.
Since launching ChatGPT in 2022, OpenAI has faced growing competition from both US and Chinese rivals. Several have narrowed the performance gap, increasing pressure on OpenAI to expand its revenue base. Recent initiatives include advertising on free-tier products and deeper pushes into healthcare, finance, and enterprise services.
The company’s close partnership with Microsoft has also drawn scrutiny. Nearly half of Microsoft’s long-term commercial contracts are reportedly tied to OpenAI, raising concerns among analysts about concentration risk.
Microsoft executives have publicly defended the relationship, describing it as one of the most successful partnerships in the company’s history.
If OpenAI proceeds with the new funding round or a potential public listing, it could reshape how the market values AI companies and set a new benchmark for the cost of staying competitive in the sector.