What OpenAI’s $110 billion funding round says about the AI bubble

Spoiler: We’re probably safe (for now).

[Source Photo: Adobe Stock]

For years now, pundits and politicians have been predicting that the apparent AI bubble would soon burst.

Companies have poured hundreds of billions of dollars into snazzy new data centers and absurdly well compensated research teams in hopes of building powerful, wildly profitable AI models.

That’s despite the fact that even the most innovative AI companies still have modest revenues. OpenAI earned just $20 billion in 2025—less than the struggling Ross department stores make selling clothes, and about the same as Frito-Lay earns peddling potato chips.

Given those earning realities, the current absurd level of investment feels unsustainable. But if OpenAI’s massive new funding round is any indication, the AI bubble isn’t going to burst. At least, not yet.

Billions Upon Billions

In late February, OpenAI announced that it had raised $110 billion to continue building its world-leading frontier models.

The deal values OpenAI at between $730 and $840 billion. And perhaps more importantly, the round was led by massive companies and institutional investors, lending that valuation some real credibility.

Artificial Intelligence

Claire's went from tween mall icon to bankrupt — twice?

© Fast Company