One signal

OpenAI is reportedly discussing a private funding round that could value the ChatGPT maker at more than $1.2tn, while chief executive Sam Altman says going public this year would be “ill-advised” amid AI safety concerns.

Why it matters

The Motley Fool reports that no investors have been named and no terms have been agreed. The account says the company is not abandoning fundraising, however, with a private round offering more capital without the disclosure demands of public markets. That gives OpenAI more room to fund its expensive AI infrastructure push, but leaves ordinary investors waiting for a route into the company. It also shifts the immediate test from a glittering valuation to a rather less glamorous question: can the business turn enormous spending into durable returns before the market gets a proper look at the books?

Discuss: Does staying private give OpenAI useful freedom to develop safely, or mainly allow it to postpone public scrutiny while raising ever larger sums?

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