"Last November, OpenAI investor Brad Gerstner pressed Sam Altman on a podcast about how a company with $13 billion in revenue could commit to $1.4 trillion in spending. Altman bristled. "If you want to sell your shares, I'll find you a buyer," he said. "Enough." Three months later, OpenAI is aiming to raise $100 billion in its latest funding round - a sign that, even amid mounting questions, Altman can find buyers."
"Amazon, SoftBank, and Nvidia are all reportedly considering investments that could run into the tens of billions. It would be the largest fundraise in history, surpassing the last recordholder: the company's March 2025 fundraising round of $40 billion. And there are strong signals that it's weighing an IPO for later this year. For all that momentum, the chatbot pioneer can't shake the central concern: It is spending money it doesn't have, at a scale that could overwhelm its backers if revenue doesn't offset its costs."
OpenAI is pursuing a $100 billion fundraising round with potential investments from Amazon, SoftBank, and Nvidia, topping its March 2025 $40 billion raise. The company has begun testing ads inside ChatGPT for free and low-paying U.S. users to expand monetization. Massive spending commitments approach $1.4 trillion, raising concerns about profitability and investor exposure if revenue fails to cover costs. OpenAI anticipates scale will secure a decisive competitive advantage and industry centrality. Rival Anthropic responded with expensive Super Bowl advertising and public critique. An IPO later in the year is reportedly under consideration.
Read at Business Insider
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