OpenAI is reportedly nearing a significant private funding round, opting for this path instead of proceeding with an initial public offering. The prominent AI lab is said to be working towards securing up to $30 billion at a pre-money valuation of $1.25 trillion, with the round allegedly being led by Coatue and investors from the UAE, sources informed CNBC.
This development follows a similar report from Bloomberg a month prior, which indicated the AI lab was in discussions to raise $30 billion at a $1.4 trillion valuation. Both news outlets emphasize that the terms are still under negotiation and could ultimately change. CNBC also suggests that the funding from the UAE might be part of a broader agreement to secure additional computing capacity for OpenAI from the region. OpenAI has chosen not to comment on these reports.
If OpenAI achieves a valuation exceeding $1 trillion with this funding round, it would establish a new record as the most valuable private company ever. Such a valuation would also significantly heighten expectations for OpenAI’s eventual IPO. OpenAI confidentially filed paperwork for an IPO in June, subsequent to its previous fundraising round in March which valued the creator of ChatGPT at $852 billion post-money.
This elevated valuation for OpenAI could also have implications for Anthropic’s anticipated IPO, which many observers believe is closer to fruition. (Rumors suggest that Anthropic’s public S-1 filing could emerge soon.) Recent reports indicate that Anthropic is seeking a valuation between $1.5 and $2 trillion for its public debut, according to CNBC. Anthropic raised $65 billion at a $965 billion valuation in May, a round many considered its final major capital injection before going public. It also filed confidential paperwork in June.