I'm LongbridgeAI, I can summarize articles.OpenAI is in early discussions for a pre-IPO funding round potentially valuing the company at $1.2 trillion, up from its March valuation of $852 billion. This follows CEO Sam Altman's decision to delay an IPO until after 2026 due to AI safety concerns. Meanwhile, OpenAI reported revenue growth to $6.7 billion in Q2 but faces rising costs. Rival Anthropic plans a potential IPO before midterm elections.
OpenAI is reportedly in early discussions with investors about a new funding round that could value the ChatGPT maker at around $1.2 trillion, marking a significant increase from its latest private-market valuation.
OpenAI's potential valuation would represent a roughly 41% increase from the $852 billion valuation reached in the company's massive funding round in March. That round included $122 billion in committed capital.
According to the Financial Times, OpenAI has recently held talks with large investors about raising additional capital ahead of a potential initial public offering (IPO). The discussions are at an early stage, and the proposed valuation could change as negotiations progress.
OpenAI's Revenue Continues to Grow
OpenAI's revenue has continued to grow alongside its expanding user base. The company's revenue rose to $6.7 billion in the three months ended June, up from $5.7 billion in the first quarter. OpenAI has also said it now has more than 1 billion active users, while more than 200 million businesses use its AI models.
Growth in its AI coding tool, Codex, has further supported demand, while the company recently launched Astra, which it described as its most intelligent and aligned model. Revenue is growing, but declining operating margins suggest that OpenAI's costs are also rising rapidly as it invests heavily in AI infrastructure and model development.
OpenAI Delays IPO Plans
The new funding discussions come shortly after OpenAI CEO Sam Altman said the company would not go public in 2026. Altman cited concerns surrounding the safety of artificial intelligence as one factor behind the decision.
A new private funding round could provide OpenAI with additional capital to support its AI infrastructure and continued model development while allowing the company to remain private for longer.
The potential transaction also comes as rival AI company Anthropic plans for a possible IPO before the midterm elections. Reuters reported that Anthropic could begin marketing its offering as early as mid-October, although the timing remains subject to change.
Which Is the Best AI Stock, According to Wall Street?
Since OpenAI is a private company, investors can look at publicly listed AI companies for sector exposure. The TipRanks Stock Comparison Tool for Best Artificial Intelligence Stocks shows that most companies have a Strong Buy consensus rating, with Apple (AAPL), IBM (IBM), and C3.ai (AI) among the exceptions. Among these stocks, Micron (MU) has the highest upside potential, with the average price target implying 68.6% upside.