- OpenAI raises additional $10 billion, pushing total funding above $120 billion
- Sarah Friar confirms IPO preparations while emphasizing company readiness
- Major investors include Microsoft, Amazon, Nvidia, SoftBank and top funds
- ChatGPT reaches 900 million weekly users with $13.1 billion revenue last year
- Enterprise revenue growing faster, expected to reach a 50-50 split with consumer revenue
OpenAI is raising an additional $10 billion from investors, bringing its total funding round to more than $120 billion, according to CFO Sarah Friar in an interview with CNBC’s Jim Cramer.
The new capital exceeds the company’s initial $100 billion target and follows an earlier announcement in late February. The funding round is being viewed as a potential final private raise before a possible initial public offering.
Investors and Strategic Participation
The latest $10 billion commitment includes participation from Andreessen Horowitz, D.E. Shaw Ventures, MGX, TPG, and T. Rowe Price. Microsoft is also participating in this phase of the funding. Friar described Microsoft as “an incredible partner” and acknowledged CEO Satya Nadella for early support. She also highlighted broad investor interest across venture capital firms, private equity, mutual funds, and sovereign entities, noting strong belief in the AI sector.
The current raise follows a previously announced $110 billion round at a $730 billion pre-money valuation, with Amazon investing $50 billion and Nvidia and SoftBank each committing $30 billion. OpenAI also entered a multi-year partnership with Amazon to build custom models and plans to expand its $38 billion cloud agreement by an additional $100 billion over eight years.
Growth, Revenue, and User Base
Since launching ChatGPT in late 2022, OpenAI has experienced rapid growth, reaching 900 million weekly active users. The company generated approximately $13.1 billion in revenue last year.
According to Friar:
- About 60% of revenue comes from consumers
- Approximately 40% comes from enterprise clients
Enterprise revenue is growing faster and is expected to reach parity with consumer revenue by the end of the year.
OpenAI continues to expand its enterprise presence, serving clients such as Amgen, Lowe’s, Estee Lauder, and JetBlue. Competition is increasing with Anthropic, which derives roughly 80% of its revenue from enterprise accounts and serves clients including Shopify, HubSpot, and Spotify.
IPO Plans and Public Market Readiness: When asked about a potential IPO, Friar stated that OpenAI is “starting to build that outcome.” She emphasized the importance of preparing the company for public markets, noting that while funding reduces risk, market readiness remains a key factor. The company views its current funding as part of a broader transition toward eventual public listing.
Spending Adjustments and Compute Strategy: OpenAI has revised its long-term infrastructure spending plans. After previously outlining $1.4 trillion in commitments, the company now targets approximately $600 billion in compute spending through 2030. This adjustment aligns more closely with projected revenue growth.
Product Prioritization and Sora Shutdown: OpenAI recently shut down its short-form video app Sora as part of efforts to prioritize more profitable initiatives ahead of a potential IPO. Friar stated that the company faces compute limitations, requiring difficult decisions on product releases and feature rollouts. She noted that while creative initiatives may return in the future, current priorities focus on resource allocation and scalability.
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