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OpenAI Raises $122 Billion, Paving Path to IPO

The financing sets up a listing timeline, leaving profitability questions unresolved.

Overview

  • OpenAI said it secured $122 billion in new funding that values the company at about $852 billion and positions it for an IPO this year.
  • Amazon committed $50 billion, Nvidia and SoftBank each pledged $30 billion, and about $35 billion of Amazon’s pledge depends on an IPO or an AGI milestone.
  • The round set aside about $3 billion for individual investors, expanding access and gauging public demand before the listing.
  • The company plans to use the cash to build a single AI app that combines chat, web browsing, code generation, and autonomous agents.
  • OpenAI remains unprofitable and does not expect to reach profitability before the end of the decade, raising concerns over high infrastructure costs and long-term returns.