OpenAI eyes record $30 billion raise at $1.25 trillion valuation

OpenAI is reportedly in the final stages of arranging a private funding round that could reach $30 billion. The deal would value the company at $1.25 trillion on a pre-money basis, a figure that would immediately place it in uncharted territory for private enterprises. Sources familiar with the discussions told CNBC that the round is being led by the investment firm Coatue alongside investors from the United Arab Emirates.

This development follows a similar report from Bloomberg earlier this month. That earlier report suggested the AI lab was targeting a slightly higher valuation of $1.4 trillion for the same $30 billion raise. Both news outlets agree that terms are still under active negotiation, meaning the final numbers could shift before any deal is signed. OpenAI has declined to comment on the ongoing discussions.

The proposed investment from the UAE appears to be linked to broader strategic goals beyond just capital. According to CNBC, the funding package may be paired with an agreement to secure additional computing capacity for OpenAI from the region. This approach suggests the company is looking to solidify its infrastructure needs while simultaneously expanding its balance sheet.

If OpenAI successfully closes this round at a valuation exceeding $1 trillion, it would break the record for the most valuable private company in history. Such a milestone would significantly raise the expectations for its upcoming initial public offering. The company filed confidential paperwork for an IPO in June, just a few months after its previous funding round in March valued the ChatGPT maker at $852 billion on a post-money basis.

The background of this move shows a rapid acceleration in OpenAI's growth metrics. The jump from an $852 billion valuation in March to a potential $1.25 trillion pre-money valuation in late October highlights the intense market demand for AI infrastructure. This trajectory indicates that investors are willing to pay a premium for access to the leading model in the sector, even as the company prepares for a public listing.

The high valuation of OpenAI also has direct implications for its main rival, Anthropic. Many industry observers believe Anthropic is closer to launching its own IPO than previously thought. Rumors suggest that a public S-1 filing from Anthropic could appear at any time, signaling an imminent entry into the public markets. The success of OpenAI's current raise could set a difficult bar for Anthropic to match.

According to CNBC, Anthropic is reportedly seeking a valuation between $1.5 and $2 trillion for its public debut. This target is ambitious and would require the company to demonstrate sustained growth and market dominance to justify such figures. The competitive dynamic between the two leading AI labs is intensifying as both prepare for what could be the largest technology listings in recent history.

Anthropic raised $65 billion in May at a $965 billion valuation, a round that many believed would be its last major private financing before an IPO. The company also filed confidential paperwork for its own IPO in June, mirroring the timeline of its rival. As both firms navigate the path to the public markets, the outcome of OpenAI's current negotiations will likely serve as a key indicator of investor appetite for high-growth AI stocks in the coming months.