OpenAI, the developer of ChatGPT, is on the verge of finalizing a historic funding round poised to raise over $100 billion, pushing the company’s valuation to more than $850 billion. This landmark deal, reported by Bloomberg and other outlets, represents the largest financing event in the history of artificial intelligence, underscoring the immense investor appetite for generative AI technologies. The company is aggressively spending to fuel its growth and is now exploring new revenue streams, including testing advertisements for free ChatGPT users, to pave a path toward profitability.
A Coalition of Tech Giants
The initial phase of this massive funding round is being led by a consortium of strategic tech titans. Participants reportedly include Amazon, which is considering an investment of up to $50 billion, SoftBank with a potential $30 billion contribution, and chipmaker Nvidia, which is nearing a $20-30 billion investment. Long-time partner Microsoft is also participating, continuing its multi-billion dollar commitment to OpenAI. The total valuation of over $850 billion is an increase from an initially expected $830 billion, with the pre-money valuation holding steady at $730 billion. Following this first tranche, venture capital firms and sovereign wealth funds are expected to join in a second phase, potentially driving the total capital raised even higher.
Fueling the AI Arms Race and the Path to Profitability
This unprecedented capital injection is set against the backdrop of staggering operational costs required to develop and run advanced AI models. OpenAI’s CFO, Sarah Friar, confirmed that the company’s revenue surpassed $20 billion in 2025, a tenfold increase since 2023, but the firm continues to invest heavily in computational infrastructure. To diversify its income, OpenAI has begun testing a premium advertising model on ChatGPT. With a cost-per-mille (CPM) of $60 and a minimum investment of $200,000, the company is targeting major brands and positioning itself as a premium advertising channel. Analysts estimate this new venture could generate between $500 and $800 million in its first year alone.
The Competitive Landscape and Future Outlook
OpenAI’s massive fundraising effort solidifies its leadership position in an increasingly competitive market. It faces significant rivals in Anthropic, backed by Google and Amazon, and Google’s own Gemini models. This funding round is a clear move to out-capitalize competitors in the global race for AI talent and infrastructure. While OpenAI has not officially commented on the specifics of the deal, experts agree that this financing will dramatically accelerate the development of next-generation AI, expand the company’s global infrastructure, and cement its market dominance. The move is seen not just as a financial milestone for OpenAI but as a pivotal moment that could reshape the entire artificial intelligence industry for years to come.
