OpenAI eyes $1.2 trillion valuation in new funding round

The reported $1.2 trillion figure would mark a sharp step up from OpenAI's $852 billion valuation in March — an increase of about 41% in a matter of months. According to the Financial Times, talks with large investors are still at an early stage, so neither the round's size nor the final valuation is settled.

What is supporting that number is revenue growth, not profit. OpenAI generated $6.7 billion in revenue in the second quarter, up from $5.7 billion in the first, and says it now serves more than 1 billion active users and over 200 million businesses. Demand for Codex, its AI coding product, has added another growth engine, and the company recently introduced Astra, its latest advanced AI model.

The challenge is that expenses are rising almost as quickly, and operating margins have been declining as OpenAI spends heavily on computing infrastructure, model training and product development. That makes continued access to private capital especially important — and it is why the fundraising talks follow Altman's decision not to pursue an IPO this year. Whether this valuation holds up is likely to hinge on whether OpenAI can keep quarterly revenue growth near current levels while improving margins, especially as Anthropic reportedly moves toward a possible IPO of its own.