OpenAI is approaching the finalization of a new $10 billion equity funding round, which would bring its total capital raised to nearly $120 billion — a record for any private technology company. According to a Bloomberg report on Tuesday, the round is expected to include investors such as MGX, Coatue Management, Thrive Capital, and potentially Altimeter Capital, all at the same pre-money valuation of $730 billion from the company's February fundraising.
Valuation and Deal Structure
If closed by end of March, the combined funding from the broader round would approach $120 billion, including the $110 billion previously raised from strategic backers like Amazon, Softbank, and Nvidia. The post-money valuation is estimated to range between $840 billion and $850 billion, placing OpenAI among the world's most valuable private companies.
The fact that investors are willing to participate at the same valuation without a discount signals strong conviction. OpenAI had previously indicated that additional financial investors would join the round as it progressed, and this latest move appears to complete that plan without material changes in terms.
Use of Funds and Financial Health
The capital will be allocated to familiar priorities: data centers, compute clusters, hiring, and product expansion. Running frontier AI models is expensive — OpenAI's monthly costs are reportedly near $4 billion. However, revenue growth remains robust. ChatGPT now has over 900 million weekly active users and more than 50 million paid subscribers, justifying the high burn rate to investors.
The company is not rushing to go public but has set an IPO target for late 2026. This round extends its private runway while allowing continued aggressive investment.
Nonprofit Arm's Strategic Move
Separately, OpenAI's nonprofit entity announced it will disburse $1 billion in grants throughout 2026, focusing on AI safety, biosecurity risk mitigation, and bioscience applications. Co-founder Wojciech Zaremba is transitioning to a senior role overseeing safety and philanthropic initiatives, signaling a more systematic approach to the original mission.
The nonprofit's stake in OpenAI is now valued at over $180 billion based on the latest fundraising trajectory, giving it substantial influence over how those funds are allocated.
Competitive Landscape and Outlook
In the broader AI race, rivals like Anthropic have also closed large funding rounds, but OpenAI maintains a lead in scale, partnerships, and infrastructure spending. The timing and size of this announcement have sparked debate among investors and on social media, with the consistency of the valuation being a key talking point. With fresh capital, OpenAI is well-positioned to sustain its technological edge while funding its philanthropic ambitions.