OpenAI nears $30B raise at $1.25T valuation led by UAE

OpenAI is close to raising up to $30 billion at a $1.25 trillion valuation, in a round led by investors from the United Arab Emirates and the hedge fund Coatue, CNBC reported on Thursday, citing people familiar with the deal. The valuation is pre-money, meaning it does not count the new capital. On Thursday, the ChatGPT maker told investors it wants signatures by the end of next week, though the final size of the round is still being worked out.cnbc.com

People familiar with the deal told CNBC that the round is being presented as an "opportunistic" bridge to a possible initial public offering. Chief Financial Officer Sarah Friar has told employees a listing will likely come in 2027.cnbc.com

A lower price than first sought

The $1.25 trillion figure is below what OpenAI was aiming for only weeks ago. On September 29, Bloomberg News reported that the company wanted at least $30 billion at about $1.4 trillion before new money, after it had pushed back its IPO plans. Reuters also carried that report. Bloomberg later reported that OpenAI told prospective investors it expected to reach $70 billion or more in annualized revenue by year-end, up from about $50 billion at the end of September, according to The Daily Star.reuters.com+2

Even at the lower price, the deal would be a large jump from OpenAI's last raise in March, which valued the company at $852 billion post-money, TechCrunch noted. A valuation above $1 trillion would make OpenAI the most valuable private company ever, according to the outlet. Terms are still being negotiated and could change. OpenAI declined to comment, TechCrunch reported.techcrunch.com

Compute deal with the UAE

OpenAI is also negotiating a commercial deal alongside the investment that would give it more computing capacity from the UAE, one person told CNBC. The extra capacity would support the company as it expands its AI business.cnbc.com

Uneasy markets and an Anthropic test

The fundraising is happening while tech markets are choppy. Investors have been uneasy about CoreWeave ↘ 2.46% and about how easy financing will be as interest rates rise, CNBC reported. OpenAI has already filed confidentially to go public.cnbc.com

Rival Anthropic may test investor appetite first. TechCrunch reported that Anthropic raised $65 billion at a $965 billion valuation in May, also filed confidentially in June, and is reportedly seeking $1.5 trillion to $2 trillion in its public debut. According to TechCrunch, a trillion-dollar private price for OpenAI would "raise the bar even higher" for its own eventual IPO.techcrunch.com