OpenAI seeks new funding ahead of IPO

OpenAI is reportedly preparing for a new funding round before its planned initial public offering in 2027. However, some investors have shown hesitation, leading the company to adjust its ambitions. The company, led by CEO Sam Altman, has been raising funds rapidly, with just seven months having passed since it announced a historic 122 billion-dollar funding round.

Investors involved in talks

According to CNBC, American investment firm Coatue and several investors from the United Arab Emirates are involved in the negotiations. The envisioned valuation of OpenAI before the new funding injection is 1,250 billion dollars. However, the Financial Times reported that OpenAI initially expected a valuation of 1,400 billion dollars, but not all investors have committed to that level.

Long-term support from Microsoft

Investors have supported OpenAI for years, starting with Microsoft in 2019. Microsoft added more funds in 2021 and 2023, with 6.6 billion dollars raised in 2024 and 40 billion the following year. In March, OpenAI announced 122 billion dollars in committed capital, for a valuation of 852 billion. However, these commitments do not necessarily mean the money is immediately available.

Valuation increase and investor caution

The new funding round would raise OpenAI’s valuation to nearly 50% above the previous level. However, the fact that OpenAI had to revise its expectations indicates caution among investors already heavily engaged. The prospect of an initial public offering in 2027 could also encourage them to examine the company's financials more closely.

ChatGPT’s revenue and costs

ChatGPT generates significant revenue, but it also incurs substantial costs. According to Reuters, its revenue for September, extrapolated over twelve months, would approach 50 billion dollars. However, this is an annualized rate, not actual revenue collected over a full year. The main issue comes from expenses, as training models requires massive computing infrastructure.

High expenses and future projections

Daily use of ChatGPT also requires thousands of GPUs. The more users it attracts, the more OpenAI must invest to meet demand. According to internal projections from the Financial Times, the company could consume 278 billion dollars of cash by 2030. This estimate highlights the scale of the financial challenge, though these projections may change.

Competitors also spending heavily

Anthropic and Mistral are also spending billions on developing their models. In May, Anthropic raised 65 billion dollars, raising its valuation to 965 billion. The creator of the Claude chatbot is also preparing its initial public offering, with increasing computational power needs. Google, meanwhile, has a more stable financial position due to Alphabet’s profits.

Mistral and the AI investment landscape

French company Mistral AI obtained 3 billion euros in September, for a valuation exceeding 21 billion. The company is focusing on professional services and technological sovereignty. Overall, artificial intelligence currently resembles more of a bottomless pit than a cash machine, with high costs and uncertain returns.