OpenAI Raises $122B in Record Funding Round, Attracts $3B from Retail Investors Ahead of IPO
OpenAI has closed a record-breaking $122 billion funding round at a staggering $852 billion valuation, marking the largest capital raise in the AI company’s history. The tech giant is ramping up operations ahead of an anticipated public offering later this year, aiming to solidify its position at the forefront of artificial intelligence.
The massive financing effort was co-led by SoftBank and Andreessen Horowitz, with support from D.E. Shaw Ventures, MGX, TPG, and T. Rowe Price Associates. Major tech players such as Amazon, Nvidia, and Microsoft also participated. Notably, $3 billion of the total came from retail investors through traditional banking channels, giving everyday investors early access to the high-profile private company.
OpenAI is expanding its financial flexibility alongside the new funding. The company increased its revolving credit facility to $4.7 billion, backed by leading global banks, although it remains undrawn. Analysts say this positions OpenAI to continue its aggressive spending on AI chips, data centers, and top talent without immediate liquidity concerns.
The company reported impressive revenue and user growth, claiming $2 billion in monthly revenue and 900 million weekly active users in consumer AI products, alongside over 50 million paying subscribers. OpenAI also noted that its search usage has nearly tripled over the past year and that its ads pilot has already generated more than $100 million in annual recurring revenue in just six weeks. On the business side, revenue now accounts for 40% of total income, up from 30% last year.
With its latest model, GPT-5.4, OpenAI is pushing growth across both consumer and business sectors and positioning itself as an “AI superapp,” the primary interface for how people engage with artificial intelligence. The company’s funding round, experts say, is not only about securing capital but also about building a compelling narrative ahead of its IPO, signaling confidence in its future as a dominant AI platform.
source: techcrunch