OpenAI investors have approached the company about a new funding round
CNBC • • business
Key Points:
- OpenAI investors have proposed a new funding round valuing the company at $1.2 trillion, primarily to allow employees to sell stock, but no formal discussions are currently underway.
- The company previously raised $1.22 billion at an $852 billion valuation in March and completed a $7 billion secondary share sale in August, providing liquidity for employees.
- OpenAI CFO Sarah Friar emphasized the company’s strong financial position and indicated that an IPO could happen sooner than the currently planned 2027 timeline if business growth accelerates.
- The startup, known for its AI chatbot ChatGPT, is preparing for a major IPO after filing confidentially with the SEC in June, but CEO Sam Altman recently suggested going public now would be premature due to safety concerns.
- OpenAI has faced scrutiny following security breaches involving its AI models, prompting Altman to support slowing model development to better address safety risks.
