OpenAI Nears Deal for $100B in Funding | Bloomberg Tech 2/19/2026
Summary
Bloomberg's Ed Ludlow reports on OpenAI's potential funding round exceeding $100 billion. Additionally, Mark Zuckerberg addresses Instagram's age limit enforcement challenges in a trial, while the DOJ examines the implications of a Warner Bros. Discovery sale on theater chains.
Key Insights
What is the difference between pre-money and post-money valuation in OpenAI's funding round?
In OpenAI's $100 billion funding round, the pre-money valuation (the company's value before new investment) is $730 billion, while the post-money valuation (the value after the investment is completed) could exceed $850 billion. The difference represents the value added by the new capital being invested. This distinction matters because it affects how much ownership existing shareholders retain versus how much is diluted by new investors.
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Why is OpenAI pursuing this massive funding round despite being close to profitability?
OpenAI is raising over $100 billion primarily to fund massive infrastructure and data center commitments. The company has pledged $1.4 trillion in expenditure over the next eight years and is making additional commitments for new data center deals. Even as the company approaches profitability, these enormous capital requirements for AI infrastructure development necessitate the large funding round. Additionally, OpenAI is testing ads in ChatGPT to generate more revenue as it works toward sustainable profitability.