OpenAI Mulls $1.2T Valuation in Pre-IPO Round on Strong Revenue

OpenAI is evaluating a fresh private funding round that could value the artificial intelligence developer at $1.2 trillion ahead of a planned public debut, driven by surging enterprise demand and top-line growth.

The discussions, which were initiated by large investors rather than the company itself, follow a period of rapid expansion for the developer of the GPT model lineup, according to a PYMNTS report. The potential $1.2 trillion price tag marks an increase from previous private market valuations, highlighting the capital appetite surrounding the generative AI sector as firms race toward public markets.

"This is an ill-advised moment to go public," said Sam Altman, Chief Executive Officer, OpenAI, regarding the company's timeline and rising existential safety concerns surrounding advanced artificial intelligence.

Prior Capital Raises and Public Market Timeline

The preliminary funding talks arrive as the company continues to navigate its corporate structure and liquidity needs. OpenAI previously secured $122 billion at an $852 billion valuation in March, before confidentially filing paperwork for an initial public offering in June.

Despite the confidential IPO filing, CEO Sam Altman has pushed back against near-term public market expectations, indicating that an actual market debut is unlikely to occur before 2027. Altman cited the complexities of balancing rapid technological scaling with long-term safety oversight as key reasons for maintaining private status through the intermediate term.

Revenue Surge and Massive Infrastructure Spend

The discussions come on the heels of commercial milestones. According to the PYMNTS report, OpenAI's annualized revenue topped $40 billion last month, aided by a 20% sequential uptick fueled by the July release of GPT-5.6 and the September launch of Astra.

That top-line growth is accompanied by capital expenditures required to train and run frontier models. The company spent $34 billion last year on AI model training alone and projects that it will burn through $278 billion in cash between 2026 and 2030, according to a Reuters report via NewsBreak.

What Is at Stake for the AI Sector

The evaluation of a $1.2 trillion private valuation underscores the capital concentration in foundational AI providers. As firms grapple with multi-billion-dollar infrastructure costs and extended cash burn trajectories, investor demand for pre-IPO equity remains high even as top leadership urges caution regarding the public markets.