OpenAI is reportedly close to raising over $100B at a valuation topping $850B, as investors back its path to profitability despite heavy cash burn.
OpenAI is nearing a deal to raise more than $100 billion at a valuation that could exceed $850 billion, Bloomberg reported, citing people familiar with the matter.
The financing would rank among the largest private capital raises in history and underscore investor conviction in artificial intelligence as a long-term growth engine — even as the ChatGPT maker continues to burn cash in its push toward profitability.
OpenAI has begun testing advertising within ChatGPT for free users, a move that could unlock new revenue streams but also risks alienating a user base accustomed to an ad-light experience. Investors appear willing to accept that gamble. The reported valuation would be roughly $20 billion higher than the previously expected $830 billion figure, though Bloomberg said the company’s pre-money valuation would remain around $730 billion.
Initial tranches of funding are expected to come from a familiar group of technology heavyweights. Amazon is reportedly in discussions to invest up to $50 billion. SoftBank is preparing a commitment of about $30 billion, while Nvidia is said to be close to investing $20 billion. Microsoft, already a major backer, is also participating. Venture capital firms and sovereign wealth funds are expected to join in later rounds, potentially pushing the total capital raised even higher.
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The scale of the financing reflects both OpenAI’s extraordinary ambitions and the capital-intensive nature of frontier AI development, where computing infrastructure, model training and global deployment require vast sums.
An OpenAI spokesperson did not immediately respond to a request for comment.
If completed at the reported terms, the deal would cement OpenAI’s status as one of the most valuable private companies in the world — and a central force shaping the economics of the AI era.
