OpenAI looks to raise $30 billion at $1.4 trillion valuation after deferring IPO: Report

Sam Altman, CEO, Open AI.OpenAI is looking to raise at least $30 billion from investors at a valuation of around $1.4 trillion, excluding the new capital, after pushing back plans for an initial public offering (IPO), Bloomberg reported.The fundraising discussions are in the early stages and could change, according to the report.

Investor demand is driving the potential round, one person familiar with the matter said.Bloomberg had previously reported that OpenAI was considering raising funds at a valuation of $1.2 trillion.OpenAI pushes back IPO plansThe fundraise is intended to serve as a bridge round, providing OpenAI with additional capital in place of an IPO.OpenAI and rival Anthropic have both filed confidential paperwork to go public, with Anthropic expected to list as soon as this fall.OpenAI CEO Sam Altman recently said the company would not go public this year as it focuses on addressing AI safety concerns, describing it as an ‘ill-advised moment’ for an IPO.OpenAI most recently raised $122 billion in March at a $852 billion valuation, including the capital raised.OpenAI faces scrutiny over AI safetyOpenAI, like other AI companies, has faced scrutiny over the potential for artificial intelligence to cause catastrophic harm, including through cybersecurity breaches.Its technology has been involved in several security incidents, including targeting Australian government websites, according to recent news reports.OpenAI also said this week that it would not release its latest model, GPT-6.1 Astra, after the system failed to meet its internal safety standards.OpenAI expands AI agents, subscription offeringsOpenAI is also continuing to compete in the market for AI agents designed to handle more complex tasks for users.At its developer event on Tuesday, the company unveiled Dots, a new always-on AI agent that is set to compete with products including Meta Platforms’ Muse.OpenAI is also introducing a new $500 subscription tier offering higher usage limits and faster processing speeds, while reducing certain usage limits on its $200 plan.The company’s revenue run rate exceeded $40 billion over the summer, Bloomberg reported in August.

Its run-rate revenue has grown 70 per cent since July, according to a person familiar with the matter.