OpenAI plays $1.5 trln chicken with chatbot frenzy

Furthermore, Altman has pushed back near-term IPO talk. The longer the wait for an exit, the greater the risk: new revelations about hacks by the company’s own bots continue to emerge, calls for regulation are growing, and proposals to “pace” research could re-scramble the industry. Meanwhile, oil prices are again climbing, posing severe risks to the global economy. Astra gives OpenAI a strong hand to demand more from investors. It cannot stop the world from turning. **Context news** OpenAI has held conversations with investors about a new funding round that could value it at $1.2 trillion after they approached the company, the Financial Times reported on September 15. The ChatGPT developer believes it should be valued at $1.5 trillion at least, the New York Times subsequently reported on September 16, given advances in its latest AI models. Altman’s opposite number at Anthropic, Dario Amodei, has presided over massive growth in the past year, surpassing OpenAI in both valuation, at $965 billion, and revenue, per the Wall Street Journal. Investors have now approached OpenAI about raising fresh funding that would vault its valuation even higher, to $1.2 trillion from its last mark of $730 billion, the Financial Times reported on Monday. Yet the company wants more, eyeing a $1.5 trillion benchmark, according to the New York Times. Though flush from a $122 billion raise in March, the company must devour capital to keep up with the moving AI frontier. In July, internal projections for spending through 2030 hit $750 billion. The existential stakes are clear from recent launches. A string of powerful new models had begun shifting market share back towards OpenAI, judging by data from access provider OpenRouter and payments group Ramp. Astra, which tops key benchmarks, added a decisive bump. Given the apparent tenuousness of any technological advantage, it would be prudent to grab every extra dollar. It is also unsurprising that investors are again knocking. SpaceX’s SPCX.O initial public offering in June proved that stock markets can welcome gigantic, cash-incinerating science projects. OpenAI also offers perhaps the last chance to back a leading U.S. lab, given that Anthropic is planning a mega-IPO at a potential valuation of $2 trillion. Yet the demanded price of entry is steep. Unless OpenAI suddenly gains a massive lead over its rival, its mooted valuation goal leaves a much slimmer IPO uplift. True, SpaceX saw its price tag similarly climb from $350 billion up to $1.25 trillion prior to its launch. But that was juiced by a merger with Musk-affiliated xAI. Sam Altman is back in the driver’s seat. After a stiff challenge from arch-rival Anthropic, the OpenAI boss can now bask in the successful launch of cutting-edge model Astra. From that position of strength, the company is playing hardball with investors in fundraising talks that could lift its valuation over $1 trillion. Even by the industry’s crazed standards, pushing for yet more is a tough sell.

OpenAI plays $1.5 trln chicken with chatbot frenzy

Risks of waiting for an exit

Investors weigh a richer round

Why investors keep coming back

OpenAI pushes for a higher valuation

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