Quick Overview

  • OpenAI Chief Financial Officer Sarah Friar said in an interview with CNBC on Tuesday that the company is advancing a $120 billion funding round with a diverse group of investors.
  • The round is $10 billion larger than the $110 billion announced in February, with new investors including T. Rowe Price, D.E. Shaw Ventures, TPG, and Abu Dhabi's MGX.
  • Friar said, "People truly believe in this AI revolution and want to put money into it."

In-Depth Analysis

OpenAI's fundraising move comes amid market rumors of its preparation for an IPO. The Wall Street Journal reported earlier this year that the company is preparing to launch an initial public offering (IPO) by the end of 2026.

In a February blog post, OpenAI announced $110 billion in new funding at a pre-money valuation of $730 billion, with SoftBank and Nvidia each committing $30 billion and Amazon committing $50 billion. The company also said it had signed a strategic partnership with Amazon and secured support from Nvidia for "next-generation inference computing."

OpenAI said in a statement, "These partnerships expand our global reach, deepen our infrastructure, and strengthen our balance sheet, enabling us to bring frontier AI to more individuals, businesses, and communities worldwide."

In a LinkedIn post following Tuesday's interview, Friar said OpenAI plans to close its latest funding round "soon."

Meanwhile, the AI giant is also expanding its finance team. In a recent LinkedIn post, Friar announced Ajmere Dale as Chief Accounting Officer and Cynthia Gaylor as Business Finance Officer. She said, "The finance organization is operating at full speed. We are building, delivering, and operating at scale, with rigor, speed, and a strong sense of responsibility."

According to Friar, OpenAI expects its enterprise customer count to grow this year. Currently, about 60% of the company's revenue comes from consumers and 40% from enterprises. Friar told Cramer, "I think by the end of this year, that will be closer to 50-50."