OpenAI speeds up $30 billion raise before Anthropic IPO

OpenAI is trying to lock in investor commitments for a funding round of about $30 billion before rival Anthropic's expected market debut in mid-November. The round could value the ChatGPT maker at more than $1.4 trillion, Reuters reported on Monday, October 19, citing two people familiar with the matter. SoftBank Group, Abu Dhabi-based MGX and other existing backers are in talks to join.reuters.com

The quick timeline shows how closely the two AI labs now compete for the same pool of capital. OpenAI met with long-only funds and sovereign wealth funds last week while Anthropic held its own investor day. The round is expected to move faster than is normal for a deal of its size, according to Reuters. OpenAI and SoftBank declined to comment.reuters.com

Racing the comparison

OpenAI wants to finish the round before Anthropic's financial disclosures give investors a fuller view of its rival and invite side-by-side comparisons, one source said. In its pitch, OpenAI points to faster growth since it launched its GPT-6 Astra model. It says it has reached $50 billion in annualized revenue and expects that figure to hit $70 billion by year-end, the report said.reuters.com

The two companies count revenue differently. OpenAI reports on a net basis, while it has accused Anthropic of inflating its figures by counting the gross value of contracts sold through cloud partners. Anthropic says it follows established accounting practices. Anthropic's annualized revenue reached about $65 billion by July, and its third-quarter revenue rose to $16.8 billion from $11.6 billion, Reuters reported.businesstimes.com.sg

"OpenAI could want to set its own valuation and not have to worry about a comp," said Edward Best of Willkie Farr & Gallagher, who is not involved in the deal. "It's really a two-horse race in terms of being public."

A bridge to a later listing

The round would sharply raise OpenAI's $852 billion valuation from March, when it closed a record $122 billion round that included a commitment of up to $50 billion from Amazon Amazon.com, Inc. ↗ 4.98%. Bloomberg first reported the talks in September as a bridge round at a pre-money valuation of $1.4 trillion, SBS News noted. CEO Sam Altman has ruled out a 2026 listing, citing AI safety concerns. "Right now would be an ill-advised moment to go public," he told Fortune. Investors told Reuters the company also needs the money to cover its infrastructure commitments in case its planned 2027 listing slips.news.sbs.co.kr+1

Choppy markets

Both companies are raising money in a shaky market. Some Anthropic investors have argued for an IPO valuation closer to $1.5 trillion rather than the $2 trillion it wanted, after third-quarter results fell short of expectations, Reuters reported. CoreWeave ↘ 0.44% shares and debt fell sharply last week. Companies in the Philadelphia Semiconductor Index PHLX Semiconductor Index ↗ 1.62% lost $1.6 trillion in market value in less than two weeks. Several other companies have postponed their listings until after Anthropic goes public.reuters.com