OpenAI working on new $30B raise at $1.25T valuation ahead of IPO

Artificial intelligence leader OpenAI is reportedly closing in on another massive private funding round rather than immediately proceeding with an initial public offering. Sources told CNBC that the AI lab is working on raising up to $30 billion at a $1.25 trillion pre-money valuation, in a round led by Coatue alongside investors from the United Arab Emirates.

This development follows a similar report by Bloomberg a month prior, which stated the company was targeting a $30 billion raise at a $1.4 trillion valuation. Both outlets noted that terms are still under negotiation and remain subject to change. CNBC also reported that the UAE funding could be tied to an agreement securing additional computing capacity for OpenAI, while the company itself declined to comment on the matter.

Should OpenAI achieve a valuation exceeding $1 trillion in this round, it will shatter records as the most valuable private company in history. Such a monumental valuation would also raise the bar for the creator of ChatGPT as it prepares for its forthcoming public debut, having filed confidential paperwork for an IPO in June following a March funding round that valued the firm at $852 billion post-money.

This soaring valuation is expected to ripple across the industry, potentially impacting Anthropic's own anticipated public debut. Rumors suggest Anthropic's public S-1 filing could arrive imminently, with reports indicating the company is seeking a valuation between $1.5 and $2 trillion. Anthropic previously raised $65 billion at a $965 billion valuation in May and filed its own confidential paperwork in June.

Source: TechCrunch