OpenAI is reportedly in preliminary talks with investors about conducting another private funding round that could value the company at approximately $1.2 trillion, ahead of a planned initial public offering (IPO). This potential fundraising effort follows the company’s $122 billion capital raise in March, which valued it at about $852 billion. The discussions are in the early stages and any final valuation or timing may evolve in the coming months.

The company’s CEO, Sam Altman, indicated over the weekend that an IPO is unlikely before 2027, citing ongoing concerns about the existential risks posed by artificial intelligence. He described the current environment as an "ill-advised moment" for going public, underscoring the broader industry debate around AI safety. Altman’s comments come amid increasing scrutiny of AI’s potential societal impacts and the call by some in the field, including Anthropic’s CEO Dario Amodei, to decelerate AI development.

OpenAI’s consideration of an additional funding round appears driven by a need for continued capital, reflecting the substantial costs involved in training advanced AI models. The company reportedly spent $34 billion last year and has emphasized that despite this, it currently has sufficient resources following its March fundraising. The recent launch of updated models, GPT-5.6 in July and Astra earlier this month, has contributed to a 20 percent jump in revenue growth, reportedly pushing the company’s annualized revenue beyond $40 billion last month.

The proposed private round would offer existing investors, including SoftBank and Thrive Capital, an opportunity to increase their stakes but might extend the wait for returns typically expected from a public offering. Some sources noted that the conversations were initiated by investors rather than by OpenAI itself.

The company has confidentially filed its IPO prospectus as of June but has since delayed its public listing. This contrasts with OpenAI’s chief competitor Anthropic, which recently surpassed a $965 billion valuation in a post-money funding round and is on track to become profitable for a second consecutive quarter on an adjusted basis. Anthropic is expected to pursue an IPO as soon as October with a valuation estimated around $2 trillion.

OpenAI declined to comment on the fundraising discussions, and the company’s future strategy remains closely watched by industry observers, given its prominent role in AI innovation and the broader implications for technology development and regulation.