The artificial intelligence sector is witnessing another wave of massive capital inflows. According to Bloomberg, OpenAI is nearing the closing of a new $10 billion primary equity round, priced at a $730 billion pre-money valuation — the same valuation used in the company's February funding round. This signals that investors are willing to write large checks without demanding a discount.
Investment Details and Investor Roster
Participants in the round include MGX, Coatue Management, Thrive Capital, and potentially Altimeter Capital. If the deal closes by the end of March, OpenAI's total cumulative funding will approach $120 billion, combining this new capital with the approximately $110 billion previously raised from strategic backers such as Amazon, Softbank, and Nvidia. The post-money valuation is expected to range between $840 billion and $850 billion, placing OpenAI among the world's most valuable private companies.
Use of Funds and Financial Performance
The fresh capital will be deployed into familiar areas: data centers, computer clusters, hiring, and product expansion. Running frontier AI models is expensive; reports indicate OpenAI's monthly expenses have reached nearly $4 billion. However, revenue growth is keeping pace: ChatGPT now has over 900 million weekly active users and more than 50 million paid subscribers, giving investors confidence despite the high burn rate.
Non-Profit Arm Developments
Separate from the equity round, OpenAI's non-profit entity announced it will distribute $1 billion in grants throughout 2026, focusing on AI safety, biosecurity risk mitigation, and applications in life sciences. Co-founder Wojciech Zaremba is stepping into a senior role related to safety and philanthropic initiatives, signaling a more systematic approach to the organization's original mission. Based on the latest funding trajectory, the non-profit's stake in OpenAI is valued at over $180 billion, giving it significant influence over how those funds are allocated.
IPO Outlook and Competitive Landscape
Despite the enormous fundraising, OpenAI is in no rush to go public. The company still targets an IPO in late 2026, and this funding round extends its runway considerably. In the broader AI race, competitors such as Anthropic have also closed large funding rounds, but OpenAI maintains its lead in scale, partnerships, and infrastructure investment.