OpenAI Could Be Worth $1.2T Before It Even Goes Public

• Open AI IPO plans for now, remain beyond 2026, with a new Open AI funding round, Sam Altman’s comments on AI safety, and a potential Open AI valuation above $1.2T shaping the company’s next phase
• OpenAI is reportedly exploring a funding round at a valuation above $1.2T, although talks remain preliminary
• Sam Altman has ruled out a 2026 IPO, citing the timing of AI safety and alignment concerns

The major AI Frontier companies are aggressively vying for the top market spot. In this race, OpenAI could be heading towards a fresh funding round, with its valuation potentially stretching as high as $1.2T. Per the latest report, the company is still in the early stages of talks, which simply means that the OpenAI valuation and OpenAI funding round may be subject to change. The discussions have arrived just months after the firm completed a record $122B funding round at an $852B post-money valuation in March 2026. A staggering $1.2T OpenAI valuation would put the company about 41% above its valuation reported in March.

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Open AI Funding Round Could Come Before IPO

The race for major companies working on their IPOs has become quite aggressive. Open AI has also joined this race, where the firm is reportedly seeking new funding. This funding round may come first, as the company could potentially pursue an Open AI IPO in 2027. CEO Sam Altman had earlier shared how his company will not go public this year, citing AI safety concerns around the timing of an IPO.

“OpenAI is considering a new funding round at a valuation of more than $1.2 TRILLION, per WSJ. The potential raise would come ahead of a highly anticipated IPO now expected in 2027. OpenAI was valued at $852 billion in March after raising $122 billion. A $1.2T valuation would represent an increase of more than $348 BILLION since March. The company has now surpassed 1 billion active users, while quarterly revenue reached $6.7 billion in Q2.”

However, this does not mean that the company has shelved its OpenAI IPO plans.

Fortune had earlier shared that the company has merely postponed, shifting its IPO focus toward 2027 or later.

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What Does a $1.2T Open AI Valuation Mean?

Open AI’s latest valuation discussions have come at a time when AI competitiveness has hit new highs. The company wishes to expand its user base and revenue, which may have been a leading case for these valuation statistics. The company had earlier shared how its revenue had hit $6.7B in Q2, up from $5.7B in Q1. The firm later confirmed how its user base has significantly grown, with more than 1B people using its products.

The new capital may end up bolstering the company’s position even stronger. This new capital may help fund the enormous computing power and infrastructure costs, helping the company rise steadily. Additional reports have confirmed how the company had used a significant share of capital earlier to strengthen its model training. It could continue using the fresh capital invested to maintain the same pace.

Altman On AI Safety

With the OpenAI valuation and IPO discussions heating up, Sam Altman, the CEO of OpenAI, had earlier cleared the air around the same. Altman had shared how his company will not go public in 2026, citing AI safety concerns around the timing.

He later said it would be an ill-advised move given the work still needed around AI safety and alignment.

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