OpenAI raises $122 billion at $852 billion valuation, closing largest funding round in history

AI giant OpenAI announced a massive funding round of $122 billion at a valuation of a whopping $852 billion on March 31, sending shock waves throughout the tech world. 

The ChatGPT operator had previously announced $110 billion in funding in February, according to CNBC, making the updated figure even more impressive. This funding round easily marks OpenAI's largest ever, as it pushes to secure more talent and data centers.

In the press release, the company stated, "Moments like this do not come often. In past generations, capital markets helped build the systems that defined modern economies, from electricity to highways to the internet. This is that kind of moment again."

The $122 billion figure was largely accomplished by securing capital from Amazon, Nvidia, and SoftBank. According to Bloomberg, Amazon invested $50 billion, while the other two companies invested $30 billion each. In addition to the contributions from these three companies, OpenAI also announced raising over $3 billion from individuals.

Yet, $35 billion of Amazon's $50 billion contribution is contingent upon OpenAI achieving one of two conditions: Either going public or achieving the widely sought-after artificial general intelligence.

It is likely, though, that the company will issue an initial public offering before the end of the year. According to Reuters, the company is preparing for an IPO "as soon as the second half of 2026."

While OpenAI is undoubtedly pleased with this funding round, the company has plenty of skeptics who doubt the revenue will ever fully justify its valuation. 

The tech sector in general is clearly enthusiastic about the potential money-making capacity of AI, leading to its substantial investments. Yet, many others, including large swaths of the American public, remain wary about AI's potential and impacts on society.

Specifically, many have raised concerns about AI data centers' energy consumption, leading to higher electricity prices for Americans, in addition to their use of water resources.

So whether the investments in AI pan out for these tech investors is uncertain, but there's no doubt that all eyes are on OpenAI and its flagship product, ChatGPT.

Which of these savings plans for rooftop solar panels would be most appealing for you? Save $1,000 this year 💸 Save less this year but $20k in 10 years 💰 Save less in 10 years but $80k in 20 years 🤑 Couldn't pay me to go solar 😒 Click your choice to see results and earn rewards to spend on home upgrades.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.