OpenAI in early talks to raise tens of billions at $750 billion valuation, IPO plans take shape
The latest funding talks also come as OpenAI reportedly lays the groundwork for an IPO that could value it at up to $1 trillion, though no timeline has been finalised.
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OpenAI is in early-stage discussions with investors to raise tens of billions of dollars at a valuation of around $750 billion, according to a report by The Information.
The report said the talks are still preliminary and key details, including the final valuation and investor participation, could change.
The funding discussions come at a time when OpenAI is rapidly scaling up its ambitions and capital requirements. Despite generating billions of dollars in revenue from enterprise AI services and licensing deals, the company is not yet profitable. It continues to incur massive costs tied to computing power, model training and infrastructure expansion—expenses that are only expected to grow as AI systems become more complex and widely adopted.
Amazon in talks to invest $10 billion in OpenAI
In recent years, OpenAI has raised capital at sharply rising valuations, reflecting investor enthusiasm for generative AI. The company has previously been in talks for a $10 billion investment from Amazon.com Inc., according to media reports. More recently, it is being reported that Amazon is again in discussions to invest in OpenAI, in a potential deal that could value the AI firm at over $500 billion.
The interest from Amazon underscores intensifying competition among Big Tech firms to secure strategic stakes in leading AI developers. Microsoft remains OpenAI’s most prominent backer and commercial partner, having invested billions of dollars and integrated OpenAI’s models across its cloud, productivity and consumer products. Amazon, meanwhile, has been expanding its own AI ecosystem through its cloud arm AWS and investments in AI startups.
The latest funding talks also come as OpenAI reportedly lays the groundwork for an initial public offering. Reuters reported in October that the company is exploring an IPO that could value it at up to $1 trillion, though no timeline has been finalised. Such a listing would mark one of the largest and most closely watched tech IPOs in history.
OpenAI’s long-term strategy hinges on building and operating vast AI infrastructure, including data centres and specialised chips, to support next-generation models. Chief executive Sam Altman has previously said the company may need to invest trillions of dollars over time to meet the growing demand for advanced AI capabilities.
As generative AI becomes central to sectors ranging from software and advertising to healthcare and education, OpenAI’s ability to attract large-scale funding will be critical—not only to maintain its technological lead, but also to compete with deep-pocketed rivals such as Google, Meta and Amazon in what is shaping up to be a prolonged and capital-intensive AI arms race.
