From securing a $1 billion investment from Microsoft in 2019 after transitioning to a hybrid for-profit model, to reaching a $300 billion valuation with a $40 billion funding round in 2025, and now climbing to $852 billion, OpenAI has completed a remarkable transformation from a nonprofit research lab into the world’s most highly valued AI company in just seven years.

The $122 billion funding round is led by three major technology players:

• Amazon committed $50 billion, of which $35 billion is conditional — requiring OpenAI to either complete an IPO by the end of 2028 or achieve artificial general intelligence (AGI). This clause effectively serves as a direct bet on OpenAI’s path to public listing.
• Nvidia and SoftBank each committed $30 billion, with phased payments scheduled in two installments later this year.
• An additional $7 billion was raised from new institutional investors, including Andreessen Horowitz (a16z), D.E. Shaw Ventures, Abu Dhabi sovereign fund MGX, TPG, T. Rowe Price, and existing investor Microsoft (though Microsoft’s exact contribution was not disclosed).

Three Key Features of the Funding

1. Opening the Door to Retail Investors
For the first time, OpenAI is offering approximately $3 billion in shares to individual investors through private placements arranged by major banks. Notably, OpenAI shares will also be included in multiple ETFs managed by Cathie Wood’s ARK Invest, allowing retail investors to gain indirect exposure via public markets.

2. Expansion of Credit Facilities
OpenAI has expanded its revolving credit line to approximately $4.7 billion, backed by a global banking syndicate including JPMorgan, Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo, Mizuho, RBC, SMFG, UBS, HSBC, and Santander. This credit line remains undrawn, effectively providing OpenAI with a significant liquidity buffer.

3. Establishing a New Valuation Benchmark
With a valuation of $852 billion, OpenAI now stands far ahead of competitors such as Anthropic (approximately $387 billion) and is approaching the valuation range of tech giants like Meta (around $1.3 trillion) and Nvidia (around $1.8 trillion). If listed at this level, OpenAI would become one of the most valuable technology companies globally.

Strong Growth, But Still Unprofitable

OpenAI currently generates approximately $2 billion in monthly revenue, with total revenue reaching $13.1 billion in 2024. Its growth rate is roughly four times faster than that of companies like Google and Meta at similar stages.

ChatGPT now has over 900 million weekly active users and more than 50 million paying subscribers. Its web traffic and mobile usage are six times higher than the second-largest AI application, while search usage has nearly tripled within a year.

Enterprise services have become a key growth driver, accounting for more than 40% of total revenue, with expectations to exceed 50% by year-end. Meanwhile, its advertising pilot program generated over $100 million in annual recurring revenue in less than six weeks.

However, behind these impressive numbers lies significant cost pressure. OpenAI remains unprofitable and continues to burn cash at scale. The company faces massive expenses related to computing power and AI talent. Its planned 10GW data center project with Nvidia alone involves enormous hardware and operational costs. This explains why OpenAI has recently taken steps to control spending, including scaling back certain products such as its short-video application Sora.

IPO Countdown Underway

Amazon’s conditional $35 billion investment is directly tied to OpenAI’s IPO timeline, effectively setting a soft deadline for a public listing by the end of 2028.

OpenAI is already preparing for this transition. According to reports, the company has hired several senior finance executives with IPO experience and has begun informal discussions with Wall Street banks. Markets widely expect a potential Nasdaq listing as early as the fourth quarter of 2026. CFO Sarah Friar has framed the IPO as a milestone in corporate governance and a step toward building investor trust.

Importantly, this is not a solo race. Competitor Anthropic is reportedly pursuing a $60 billion funding plan and is expected to go public by late 2026. Meanwhile, Elon Musk’s combined entity of SpaceX and xAI is also planning an IPO this year, with a potential valuation exceeding $1.75 trillion.

The simultaneous listing of multiple AI giants will pose a significant test for liquidity in the tech equity market. The company that goes public first may capture the critical “first AI stock” narrative in investors’ minds.