OpenAI announced on Tuesday it had closed a fundraising round of $122bn and achieved a valuation of $852bn. The funding cements the ChatGPT maker as one of the most highly valued private companies in the world.

The artificial intelligence firm received multibillion-dollar investments from companies including Amazon, Nvidia and SoftBank, which committed $110bn, according to the Wall Street Journal. OpenAI also allowed a select group of individual investors to contribute about $3bn. The funding round ranks among the highest-ever in Silicon Valley. OpenAI said last month it was expecting to raise $110bn in funding, but upped that figure in its latest announcement.

OpenAI’s immense funding announcement takes place as the firm eyes going public on the US stock market later this year, in what is one of the most highly anticipated public offerings in decades. As it barrels towards an initial public offering (IPO), however, the firm is simultaneously fending off numerous lawsuits, advancements from competitors, public distrust and questions over whether the entire AI industry is a bubble.

The company touted the fundraising round as proof of its rosy future and the legitimacy of its technology, despite lingering questions over how the AI boom will deliver on OpenAI’s grandiose promises. The company proclaimed in a blogpost that it would build a “unified AI superapp”, centralizing ChatGPT, the company’s coding product, web browsing and the capabilities of AI agents, which are semi-autonomous bots that act on a user’s behalf.

“AI is driving productivity gains, accelerating scientific discovery, and expanding what people and organizations can build. This funding gives us the resources to continue to lead at the scale this moment demands,” reads the blogpost announcing the funding. “Let’s go build.”

The company further said it generates $2bn a month in revenue. OpenAI loses billions of dollars a year and internal forecasts have shown that the company does not expect to be profitable until 2030, according to the Wall Street Journal.

The funding announcement is positive news for OpenAI after it revealed last week it was abruptly shutting down its Sora video generation platform and ending a $1bn partnership with Disney. OpenAI and its CEO, Sam Altman, had previously presented Sora as a landmark product and a major foray into entertainment and social media for the company.

OpenAI also quietly ended a shopping tool this month, Instant Checkout, which allowed users to purchase items from retailers such as Walmart through its ChatGPT chatbot. The five-month trial of the tool failed to build out the desired commerce platform and it was shuttered.

The startup has faced rising competition from rival AI firms such as Anthropic, which has made significant gains through the release of its Claude Code product. In December, Altman also declared a “code red” at the company to refocus on bettering ChatGPT following advancements in Google’s Gemini AI product.

OpenAI’s headwinds are not only financial; a major legal challenge looms as well. In April, Altman and OpenAI will also take part in a closely watched trial that pits the ChatGPT makers against co-founder Elon Musk. The Tesla and SpaceX CEO is suing the company, alleging they breached a founding agreement by shifting to a for-profit model. OpenAI has contended that Musk, who has since founded his own rival AI company, is bitter after leaving the company and seeing it succeed without him.