OpenAI Works on $30B Raise at $1.25T Valuation Ahead of IPO

Oct 23, 20263 min read
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OpenAI is working on raising up to $30 billion at a $1.25 trillion pre-money valuation, with Coatue and investors from the United Arab Emirates leading the round, according to sources who spoke to CNBC. The company declined to comment.

Chart showing OpenAI's valuation rising from $852 billion in March to a reported $1.25 trillion

If it closes above $1 trillion, OpenAI becomes the most valuable private company on record. Its last round, closed in March, valued the ChatGPT maker at $852 billion post-money. The new figure is a step up of roughly 47% in seven months, and it excludes the new capital itself.

CNBC reports the financing is being presented to investors as an "opportunistic" bridge ahead of a possible IPO. OpenAI told investors on Thursday it is aiming to have signatures by the end of next week, though the final size of the round is still being settled, according to people familiar with the deal.

Two prices, one month apart

A month ago Bloomberg reported OpenAI was working on $30 billion at a $1.4 trillion valuation. The number now circulating is lower. Terms are still under negotiation, and both outlets say the figures could change before anything is signed, so the gap is a measure of how live the talks are rather than a settled markdown.

The valuation matters beyond the round. It sets a reference point for OpenAI's own listing and for the public debut of Anthropic, which is chasing a $1.5 trillion to $2 trillion valuation in its IPO, CNBC reports. Reuters reported that OpenAI wants commitments in hand before Anthropic's IPO disclosures invite direct comparisons between the two labs, according to Investing.com.

Cash for compute

The money is not only financial. CNBC reports the UAE investment could be paired with a commercial deal giving OpenAI more computing capacity from the country. OpenAI told investors in February that it is targeting roughly $600 billion in total compute spending by 2030.

That spending is the reason the private rounds keep coming. OpenAI rents capacity across Microsoft, Oracle, AWS, CoreWeave and Google Cloud rather than owning data centers, and its March round was anchored by three suppliers, Amazon, Nvidia and SoftBank, with Microsoft also participating.

The listing still has no date

OpenAI filed confidential IPO paperwork with the SEC in June and has not said when it intends to debut. CFO Sarah Friar told employees in August that the company "will be a public company in 2027," CNBC reports. A month later, CEO Sam Altman said "right now would be an ill-advised moment to go public."

Timeline of OpenAI's March round, June confidential filing and the reported October funding talks

Anthropic filed its own confidential paperwork in June, after raising $65 billion at a $965 billion valuation in May. Both companies are now raising or pricing against each other while still private, which is unusual: the benchmark for each IPO is being set in negotiated rounds that the public cannot see.

The open question is whether investors will keep paying up. A $1.25 trillion pre-money figure commits new backers at a price roughly half again above March, before any public filing has shown audited revenue and losses. The earlier $1.4 trillion talk shows how quickly that appetite can move, in either direction, while the paperwork stays confidential.

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