OpenAI Closes Record $122 Billion Funding Round Ahead of Potential IPO
OpenAI secures a massive $122 billion funding round, reaching an $852 billion valuation as it reports $2 billion in monthly revenue. The company faces pressure to curb costs and justify its lofty valuation ahead of a possible public offering.
OpenAI closes a record-breaking funding round that brings in $122 billion of committed capital and pushes the company's post-money valuation to $852 billion. SoftBank co-leads the round alongside major investors like Andreessen Horowitz and D. E. Shaw Ventures, building on earlier anchor commitments from Amazon, Nvidia, and SoftBank.
The artificial intelligence giant currently generates $2 billion in monthly revenue and supports over 900 million weekly active users on its ChatGPT platform. Despite this massive revenue growth, the company still burns cash and operates without a profit as it continues to lead the rapidly expanding AI industry.
CEO Sam Altman faces intense pressure to justify this staggering valuation as the startup eyes a potential IPO, prompting recent efforts to rein in costs by shuttering projects like the Sora video app. The latest round also marks the first time OpenAI opens up investment to retail investors through bank channels, raising $3 billion from individuals.