OpenAI nears up to $30 billion funding round at $1.25 trillion valuation
Investors from the United Arab Emirates are leading the round with Coatue, positioned as a bridge before a potential IPO.
At a glance
- OpenAI is raising up to $30 billion at a $1.25 trillion valuation, led by UAE investors alongside Coatue.
- The round is positioned as an opportunistic bridge before a potential IPO, with signatures sought by end of next week.
- OpenAI filed confidentially with the SEC in June; CFO Sarah Friar said it will be a public company in 2027.
OpenAI is closing in on a funding round of up to $30 billion that would value the San Francisco-based artificial intelligence company at $1.25 trillion, according to people familiar with the deal. Investors from the United Arab Emirates are leading the round alongside Coatue, the people said, speaking anonymously because the details were confidential. The valuation does not include the new capital being raised.
OpenAI told investors on Thursday that it aims to secure signatures by the end of next week, though the final size of the round is still being determined. The financing is being positioned as an "opportunistic" bridge ahead of a potential initial public offering.
Talks began after investor approaches
OpenAI started discussions about a new round after investors approached the company with proposals in September, as CNBC previously reported. Alongside the investment, OpenAI is negotiating a commercial deal that would secure more computing capacity from the UAE, according to one person. OpenAI told investors in February that it is targeting roughly $600 billion in total compute spending by 2030.
IPO timing remains undecided
OpenAI confidentially filed its prospectus with the Securities and Exchange Commission in June but has not disclosed when it plans to debut. Chief financial officer Sarah Friar told employees in August that the AI lab "will be a public company in 2027." The following month, chief executive Sam Altman said that "right now would be an ill-advised moment to go public."
Rival Anthropic prepares its own listing
Anthropic, OpenAI's chief rival, is also gearing up for an offering that is widely expected to be massive. The company confidentially filed its prospectus with regulators in June and is actively engaging with prospective investors, as CNBC previously reported. It is reportedly seeking a valuation of between $1.5 trillion and $2 trillion in its offering. In May, Anthropic closed a $65 billion funding round at a $965 billion valuation.
Source: CNBC.
Questions and answers
- How much is OpenAI raising and at what valuation?
- OpenAI is raising up to $30 billion at a $1.25 trillion valuation, according to people familiar with the deal. That valuation does not include the new capital being raised.
- Who is leading OpenAI's new funding round?
- Investors from the United Arab Emirates are leading the round alongside Coatue. OpenAI is also negotiating a commercial deal to secure more computing capacity from the UAE.
- When will OpenAI go public?
- OpenAI confidentially filed its prospectus with the SEC in June but has not disclosed a date. CFO Sarah Friar told employees in August it will be a public company in 2027, while CEO Sam Altman said in September that going public then would be "ill-advised."
