OpenAI is holding preliminary discussions with investors regarding a new funding round that would value the company, known for ChatGPT, at more than $1.2 trillion. These talks are occurring prior to a planned initial public offering (IPO).
This potential valuation represents a significant increase, being about 41% higher than the $852 billion valuation it achieved in a funding round that closed on March 31, and 64% above the $730 billion valuation from February. The March 31 round was the largest private fundraise in history, securing $122 billion with major investments from Amazon ($50 billion), Nvidia ($30 billion), and SoftBank ($30 billion).
Sam Altman, OpenAI's CEO, has stated that the company will not go public in 2026, citing safety concerns related to artificial intelligence. However, the company confidentially filed for a listing in the second quarter of this year, with a target listing date around 2027. OpenAI's CFO, Sarah Friar, reportedly indicated that a listing by 2027 is the target, with an option to accelerate if growth permits.
OpenAI currently generates approximately $2 billion in revenue monthly, annualizing to about $25 billion. A $1.2 trillion valuation would mean the company is trading at roughly 48 times its annualized revenue. This multiple is significantly higher than that of comparable public software companies at scale, and even exceeds Nvidia's valuation multiples, despite Nvidia earning tens of billions in profit. OpenAI's revenue growth is substantial, with enterprise customers now accounting for over 40% of its business and ChatGPT boasting over 900 million weekly users, but the company also reported a loss of about $1.22 for every dollar of revenue in Q1 2026, with projected full-year losses near $14 billion.
Competitor Anthropic, valued at $380 billion in February, has seen its annualized revenue grow from $9 billion at the end of 2025 to about $30 billion by March, and has reportedly reached profitability. Some secondary market indications in late April put Anthropic's valuation near $1 trillion. The current funding talks for OpenAI were reportedly initiated by investors rather than the company itself, and such early-stage discussions are subject to change in valuation or may not close.
