SAN FRANCISCO — OpenAI has officially closed what is being called the largest private funding round in history, raising a staggering $122 billion at an $852 billion valuation. The deal, which includes roughly $3 billion from individual retail investors, signals the company's unmistakable march toward an initial public offering expected later this year.
The round was co-led by SoftBank alongside Andreessen Horowitz, D.E. Shaw Ventures, MGX, TPG, and T. Rowe Price Associates. Tech heavyweights Amazon, Nvidia, and Microsoft also participated in the fundraise, underlining the immense strategic interest surrounding the AI giant.
Retail Investors Enter the AI Race
Perhaps the most notable element of the deal is the inclusion of everyday investors. Approximately $3 billion came from individual investors through bank channels, giving non-institutional players a rare seat at the table. Additionally, OpenAI will be included in several ETFs managed by ARK Invest, further broadening the company's shareholder base ahead of its anticipated IPO.
The company also expanded its revolving credit facility to about $4.7 billion with support from several major global banks. The facility remains undrawn, suggesting that OpenAI is strengthening its financial position for the long haul rather than addressing any immediate cash crunch.
Revenue Numbers That Rival Tech's Biggest
OpenAI used the announcement to showcase a suite of eye-popping metrics. The company claims it is now generating $2 billion in revenue per month, and it took a direct shot at competitors, stating that its revenue is growing four times faster than the companies that defined the internet and mobile eras, including Alphabet and Meta.
On the consumer side, the company reports more than 900 million weekly active users and over 50 million paid subscribers. Search usage has nearly tripled in the last year alone. Meanwhile, an advertising pilot launched just six weeks ago is already bringing in more than $100 million in annual recurring revenue, opening a potentially massive new income stream for a company that built its user base entirely without ads.
Enterprise Business Gains Momentum
The enterprise segment now accounts for 40 percent of OpenAI's total revenue, up from roughly 30 percent a year ago. The company has stated its business revenue is on track to reach parity with its consumer revenue by the end of 2026. Much of this growth is being driven by adoption of agentic workflows powered by its newest model, GPT-5.4.
Building the IPO Narrative in Real Time
Industry observers have noted that OpenAI's press release accompanying the raise reads more like a draft of an S-1 filing than a typical corporate blog post. It is packed with flywheel metaphors, revenue-per-compute-unit breakdowns, and the kind of total addressable market language designed to attract institutional investors.
The company also described itself as an "AI superapp," making clear its ambition to own the primary interface through which people interact with artificial intelligence. It is a bold claim, but one backed by the sheer scale of its user base and the breadth of services it now offers, from chat and search to coding tools and enterprise agents.
What It All Means
The $122 billion round is not just about money. It is a calculated move to anchor OpenAI's valuation ahead of what could be one of the most closely watched IPOs in tech history. With revenue growing at a breakneck pace, a massive user base, and expanding enterprise adoption, OpenAI is positioning itself as the defining company of the AI era.
The capital will be used to fund the enormous costs of AI infrastructure, including chips, data center buildouts, and the ongoing race to attract top talent. For investors, both institutional and retail, the message is clear: OpenAI is betting that it can sustain this trajectory all the way to the public markets and beyond.
