OpenAI may raise another giant private round before it ever rings the opening bell. Per sources cited by CNBC, the ChatGPT maker is working on a raise of up to $30 billion at a $1.25 trillion pre-money valuation, led by Coatue and investors in the United Arab Emirates.
Quick Facts
- Amount: Up to $30 billion
- Valuation: $1.25 trillion pre-money
- Lead investors: Coatue and UAE-based backers
- Status: Talks ongoing, terms still being negotiated
- OpenAI’s response: Declined to comment
- Source: TechCrunch, citing CNBC
What Is Being Reported
CNBC’s sources say OpenAI is pursuing the round instead of rushing straight into a public listing. Both CNBC and Bloomberg caution that the terms could still change.
The figure also differs from earlier reporting. A month ago, Bloomberg reported that OpenAI was seeking $30 billion at a $1.4 trillion valuation. The new number is lower, so the price remains in flux.
The UAE Angle: Money and Compute
The Gulf backing may come with a bigger package. CNBC reports the UAE funding could be paired with a deal to give OpenAI more computing capacity from the country. That detail matters because AI labs are racing to secure data center power and chips, not just cash.
Why a $1 Trillion-Plus Valuation Is a Big Deal
If the round closes above $1 trillion, OpenAI would become the most highly valued private company in history. It would also set a very high bar for the company’s upcoming IPO, since public investors would expect growth to justify a price that large.
For context, OpenAI’s last raise in March valued it at $852 billion post-money. The new talks imply a jump of hundreds of billions in just a few months.
Where OpenAI’s IPO Stands
OpenAI filed confidential IPO paperwork in June. The new private round doesn’t cancel that plan, but it may give the company more capital and a higher reference price before it goes public.
What It Means for Anthropic
The valuation could also affect rival Anthropic. TechCrunch notes that many people believe Anthropic’s IPO is closer to happening, and rumors suggest its public S-1 filing could land any day.
Here’s how the two stack up based on the latest reports:
- Anthropic’s May raise: $65 billion at a $965 billion valuation
- Anthropic’s IPO target: Reportedly $1.5 to $2 trillion, per CNBC
- Anthropic’s filing: Confidential paperwork submitted in June
OpenAI’s pricing could help set expectations for how Wall Street values both AI labs.
What It Means for Everyday Tech Watchers
Mega-rounds like this show how much capital the AI industry is absorbing. Investors are betting that leading AI companies will keep growing fast enough to justify trillion-dollar price tags. Skeptics will point out that these valuations leave little room for error once the companies become public and face quarterly scrutiny.
What to Watch Next
- Final terms of the round, including size and valuation
- Whether UAE funding comes with a compute partnership
- Confirmation from OpenAI or its investors
- Anthropic’s public S-1 filing
- Timing of both companies’ IPOs
Source: TechCrunch