OpenAI Nears $100B Funding Round at $850B Valuation
OpenAI is reportedly in the final stages of closing a massive $100 billion funding round, a deal that could cement its role as one of the most important infrastructure companies of the AI era.
Key Takeaways
- OpenAI is closing a $100B round at a potential $850B+ valuation.
- IPO targeted for late 2026, with a $1T ambition.
- Massive AI costs mean heavy losses continue.
The round, expected to close in late February 2026, may push the company’s post-money valuation beyond $850 billion and set the stage for a potential IPO as early as the fourth quarter of 2026.
The capital raise comes as OpenAI faces soaring infrastructure costs tied to large-scale AI model training and deployment. Between 2025 and 2030, the company’s total infrastructure spending is projected to reach roughly $450 billion, underscoring the enormous capital demands of next-generation AI systems.
Funding Structure and Strategic Backers
The current financing is structured as a phased Series C round, offering preferred shares convertible into Class A common stock upon a liquidity event such as an IPO. Several of the world’s largest technology players are involved.
Amazon is reportedly considering an investment of up to $50 billion.
SoftBank is expected to commit around $30 billion in staged contributions.
Nvidia is discussing a potential $20 billion investment, which CEO Jensen Huang has described as possibly the company’s largest ever.
Microsoft is projected to contribute roughly $10 billion in this phase.
If finalized, the round would mark one of the largest private capital raises in corporate history and position OpenAI among the most valuable companies globally.
IPO Roadmap and $1 Trillion Ambition
OpenAI is also laying the groundwork for a public listing. Internal timelines reportedly target a regulatory filing in the second half of 2026, with a possible market debut in late 2026 or 2027. The company is said to be aiming for an IPO valuation that could approach $1 trillion.
CFO Sarah Friar has framed the timeline as a strategic move to reach public markets ahead of key rivals such as Anthropic, intensifying competition in the AI race.
Valuation Surge in Just Two Years
OpenAI’s valuation growth has been extraordinary. In January 2023, Microsoft invested $10 billion at a $29 billion valuation. By October 2024, the company raised $6.6 billion at a $157 billion valuation. In March 2025, it secured $40 billion at a $260 billion to $300 billion valuation. By October 2025, a $6.6 billion employee share sale lifted its valuation to $500 billion.
Now, less than two years later, OpenAI is targeting a valuation north of $850 billion in private markets.
Restructuring to Attract Traditional Capital
In October 2025, OpenAI transitioned from its capped-profit model into a Public Benefit Corporation structure. The non-profit OpenAI Foundation retains a 26% stake in the for-profit entity, while Microsoft holds roughly 27%. The foundation also retains authority to appoint and remove board members, a mechanism designed to preserve the company’s mission alignment while accommodating large-scale commercial investment.
The shift was widely viewed as a necessary step to unlock institutional capital and pave the way for a future IPO.
Heavy Losses Despite Massive Revenue
Although OpenAI generated more than $20 billion in revenue in 2025, the company remains deeply unprofitable. It is projecting a $14 billion loss in 2026, with profitability not expected until at least 2029. By that point, management is targeting annual revenue of $100 billion.
The financial model reflects the reality of AI infrastructure economics, where compute costs and data center expansion require sustained, upfront capital investment.
Elon Musk’s $134 Billion Lawsuit Casts a Shadow
A major risk to OpenAI’s funding and IPO plans is a high-profile lawsuit filed by Elon Musk, who is seeking between $79 billion and $134 billion in damages.
Musk alleges that OpenAI and Microsoft abandoned the company’s original non-profit mission in favor of commercial interests, effectively transforming it into a closed-source subsidiary. He argues that his early $38 million seed funding and reputation were instrumental in OpenAI’s rise and that he is entitled to a share of what he describes as “wrongful gains.”
A federal judge in Oakland, California, recently denied OpenAI’s motion to dismiss the case, setting a jury trial for late April 2026.
Legal and IPO Implications
The lawsuit introduces significant uncertainty. Musk is seeking a legal injunction that could prevent OpenAI from fully completing its conversion to a for-profit structure. Such an outcome could disrupt the current $100 billion funding round and complicate its IPO timeline.
Analysts warn that the potential of a nine-figure damages award could force a downward revision in valuation or delay public listing plans. OpenAI has reportedly advised investors to expect aggressive courtroom rhetoric and headline risk during the trial.
The company has characterized the lawsuit as a harassment campaign by a commercial rival, pointing to Musk’s involvement with his own AI venture. OpenAI has also released internal communications suggesting Musk once supported a for-profit pivot under certain conditions.
High Stakes for the AI Power Struggle
With nearly $100 billion on the table, a possible trillion-dollar IPO target, and a multibillion-dollar lawsuit looming, 2026 could prove decisive for OpenAI. The company’s ability to secure capital, manage legal risk, and sustain rapid infrastructure expansion will likely determine whether it becomes the defining public company of the AI era.
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