OpenAI is reportedly nearing completion of a new private financing round instead of immediately proceeding with a public offering. According to CNBC, the AI lab is working with Coatue and investors in the United Arab Emirates (UAE) to raise up to $30 billion at a roughly $1.25 trillion pre-money valuation.
Terms remain under negotiation and could change, both CNBC and earlier reports note. A Bloomberg report about a month earlier said OpenAI was seeking $30 billion at a $1.4 trillion valuation. CNBC also reported that the UAE portion of the funding could be coupled with an agreement for additional computing capacity to be provided to OpenAI. OpenAI declined to comment on the reports.
If the round puts OpenAI’s valuation above $1 trillion, it would set a record as the most valuable private company in history and would raise the bar for its planned IPO. OpenAI filed confidential paperwork for an IPO in June; its most recent raise in March valued the ChatGPT maker at $852 billion post-money.
The potential valuation also has implications for other AI companies preparing to go public. CNBC reports that Anthropic is targeting a $1.5 to $2 trillion valuation for its public debut. Anthropic raised $65 billion at a $965 billion valuation in May and likewise filed confidential IPO paperwork in June; at the time many observers viewed that funding round as the last major pre-IPO financing.
Why this matters
- Such a large private round would demonstrate continuing investor willingness to commit very large sums to generative AI firms.
- A very high private valuation can complicate a subsequent IPO: a much lower public valuation could provoke negative market reactions.
- Combining capital investment with strategic deals for compute capacity would illustrate how state-linked or sovereign-backed investors might structure support for AI companies.
Negotiations are ongoing and final terms could change; no official confirmations have been released by the companies involved.
