OpenAI is in early talks with investors for a private funding round targeting a $120 billion valuation, up from the $85.2 billion reached in March. This push follows strong revenue growth to over $40 billion annually driven by new models like GPT-5.6 and Astra, despite $34 billion in annual spending. CEO Sam Altman confirmed the IPO is in preparation but delayed beyond this year due to macro risks. The potential deal would reassert OpenAI's lead over rival Anthropic, which aims for a $200 billion IPO by October.