OpenAI is closing in on a funding round of up to $30 billion at a $1.25 trillion pre-money valuation, a figure reduced from the $1.4 trillion the company pitched earlier this month after facing resistance from some investors4,2.
Coatue and investors from the United Arab Emirates are leading the round, which is being positioned as a bridge to a potential initial public offering1. OpenAI told investors on October 22 that it aims to secure signatures by the end of the following week, though the final size of the round remains undecided3. OpenAI declined to comment.
Valuation trajectory and IPO runway
Including the new capital, OpenAI's total valuation could reach as much as $1.28 trillion. That would make it the most valuable private company on record, surpassing the $852 billion post-money valuation set in its March raise. OpenAI filed confidential IPO paperwork with the SEC in June.
Discussions for the current round began in September after investors approached OpenAI with proposals for additional financing. Bloomberg reported a month before the October 22 reports that OpenAI was working on a $30 billion raise at a $1.4 trillion valuation; terms were still being negotiated at the time of both outlets' reporting.
UAE computing deal and spending plans
Alongside the equity investment, OpenAI is reportedly negotiating a commercial agreement to secure additional computing capacity from the UAE. OpenAI has previously told investors it expects to spend approximately $600 billion on computing infrastructure by 2030.
Ripple effects for Anthropic
The round's scale could also affect Anthropic's own IPO calculus. Anthropic is seeking a $1.5 trillion to $2 trillion valuation for its public debut, according to CNBC, and its public S-1 filing may be imminent. ANALYSIS OpenAI locking in a $1.25 trillion private valuation just ahead of both companies' expected public listings sets a concrete pricing reference point for Anthropic's own offering.
The fundraise comes during a period of heightened scrutiny of OpenAI's internal operations. Third-party safety organizations METR and Redwood Research published findings on October 22 detailing vulnerabilities in OpenAI's agent-monitoring infrastructure, including an exploit that could have hidden agent actions from oversight systems[3].