A valuation above $1.2 trillion would mark a roughly 40 percent jump from OpenAI's $852 billion mark in March, underscoring how aggressively private AI valuations continue to climb even as questions persist about the sector's near term monetization path. The scale of the potential raise reinforces the broader AI capex and investment cycle that has been a key driver of technology sector earnings and equity performance this year, with major backers such as Amazon, Nvidia and SoftBank already tied to OpenAI's cap table from the March round. A delayed IPO, now expected next year rather than this one, removes a near term public market listing catalyst for AI sector sentiment, though it also means private capital continues absorbing the bulk of the funding need in the meantime. The competitive framing, OpenAI positioning itself against Anthropic and a wave of cheaper Chinese open weight models, is a reminder that the AI capital race remains intensely contested even at the frontier.---From Monday:Nasdaq futures set to open lower as Altman rules out 2026 OpenAI IPO---OpenAI is reportedly in early talks for a funding round that would value it above $1.2 trillion, well ahead of an IPO that CEO Sam Altman says isn't happening this year.Summary:OpenAI has held early discussions with investors about a funding round that could value the company at more than $1.2 trillion, according to the Wall Street Journal (gated), citing a person familiar with the matterThe company was valued at $852 billion in March after a $122 billion raise from investors including Amazon, Nvidia and SoftBankAny new round would precede OpenAI's IPO, which is now expected next year rather than this yearOpenAI says it has surpassed one billion active users and that more than 200 million businesses use its AI modelsRevenue rose to $6.7 billion in the quarter ended June, up from $5.7 billion in the first quarter, though operating margin declinedCEO Sam Altman told Fortune that going public now would be an "ill-advised moment" given ongoing AI safety concernsOpenAI has held early discussions with investors about a new funding round that could value the ChatGPT maker at more than $1.2 trillion, the Wall Street Journal reported, citing a person familiar with the matter, as the company continues to raise capital ahead of a public listing now expected next year.The talks follow the release of OpenAI's latest model and would mark a substantial jump from the company's $852 billion valuation in March, when it completed a $122 billion financing round with investors including Amazon, Nvidia and SoftBank. Any new round would precede OpenAI's long anticipated initial public offering, which the company has continued to push back.OpenAI is competing intensely for position at the frontier of artificial intelligence development, facing rivalry from Anthropic as well as newer competitive pressure from a wave of lower cost Chinese open weight models. The company said it has surpassed one billion active users since its March raise, with more than 200 million businesses now using its AI models. Its coding tool, Codex, has also seen strong growth, and the company recently released a new model, Astra, which it describes as its most intelligent and aligned to date.Financially, OpenAI's revenue rose to $6.7 billion in the three months ended June, up from $5.7 billion in the first quarter. However, its operating margin declined over the same period, pushing back the prospect of profitability ahead of any public listing.Speaking to Fortune this month, Altman said OpenAI was unlikely to go public this year, pointing to concerns around AI safety as the reason for the delay. He described the current environment as an "ill-advised moment to go public," adding that the company does not feel pressure to rush a listing. The Financial Times had earlier reported on OpenAI's fundraising discussions, which the Journal's report corroborates with additional detail on the scale of the potential valuation.----Recent history ahs shown such news is positive for Sentiment, particualrly around Nasdaq. Some notes ...The case for a modest positive: A $1.2 trillion-plus valuation reinforces the "AI investment cycle is still accelerating, not slowing" narrative that's been a key support for Nasdaq mega-cap sentiment all year. It's also a vote of confidence at a moment when there's been chatter (including from AI executives themselves, as we covered with the Vance/UBS pieces) about pacing model development or an AI bubble forming. A number this large landing without apparent difficulty pushes back against bubble-fear narratives, at least for now.Why I wouldn't lean too hard on it: OpenAI is private, this isn't a listed stock NQ futures are directly pricing. The read-through to Nasdaq is indirect, via sentiment on AI infrastructure spend and the broader ecosystem, Nvidia, cloud providers, chipmakers, rather than a direct valuation input. The market has also seen a steady drumbeat of these OpenAI valuation headlines over the past year (each one bigger than the last), so there's some habituation, the marginal surprise value of "another eye-watering OpenAI number" is lower than it would have been a year ago.The bigger context working against it today: This lands the same day as the Fed decision, with the 10-year yield sitting at its highest since 2007 and the broader tape already soft. A single private company valuation story is unlikely to offset that macro backdrop. I'd characterize this as a mild positive undertone for AI-adjacent names specifically, rather than a broad NQ catalyst on the day. This article was written by Eamonn Sheridan at investinglive.com.