OpenAI has closed a deal to raise $122 billion at an $852 billion valuation, marking its largest funding round to date. This funding aims to bolster OpenAI’s expenditures on artificial intelligence chips, data center expansion, and recruitment of talent.
Industry experts view this funding round as a strategic move by OpenAI to solidify its narrative ahead of an anticipated initial public offering (IPO). The company seeks to broaden its shareholder base by including its stock in several exchange-traded funds (ETFs) managed by ARK Invest, which enhances accessibility for potential investors.
SoftBank co-led the funding round, joined by Andreessen Horowitz, D.E. Shaw Ventures, MGX, TPG, and T. Rowe Price Associates. Additional participation came from notable tech giants, including Amazon, Nvidia, and Microsoft. Approximately $3 billion was derived from individual investors through bank channels.
OpenAI also announced an expansion of its revolving credit facility to roughly $4.7 billion, supported by leading global banks. The facility remains undrawn, enabling the company to strengthen its financial position while ramping up infrastructure investment.
The company shared significant revenue and user metrics in a release that closely resembled an S-1 filing. OpenAI claims it generates $2 billion in monthly revenue and reports growth at four times the rate of competeors such as Alphabet and Meta. OpenAI has over 900 million weekly active users and more than 50 million subscribers, with search usage increasing nearly threefold in the past year.
OpenAI’s advertising pilot has reportedly produced over $100 million in annual recurring revenue in under six weeks, indicating a promising new revenue stream. Business revenue now comprises 40% of total revenue, up from around 30% last year. The company anticipates reaching parity between business and consumer revenue by the end of 2026, driven by growth in its latest model, GPT-5.4.
OpenAI characterizes itself as an “AI superapp,” aiming to be the primary platform for AI utilization. The overall emphasis of the funding round reflects OpenAI’s intention to shape its public market narrative and prepare for its upcoming IPO.
