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OpenAI nears up to $30 billion funding round at $1.25 trillion valuation led by UAE investors

OpenAI nears up to $30 billion funding round at $1.25 trillion valuation led by UAE investors

AI enterprisestartuppolicy CNBC
OpenAI is negotiating an up to $30 billion funding round at a $1.25 trillion valuation as it prepares for a 2027 IPO.
What: Led by UAE investors and Coatue, the financing is structured as a bridge round to secure additional compute capacity and finalize corporate structure before going public. CFO Sarah Friar has signaled a 2027 public debut, while CEO Sam Altman remains cautious about the timing.
Why it matters: This move highlights the massive capital intensity of AI infrastructure, where top-tier labs are increasingly acting as sovereign-scale entities to secure energy and hardware, effectively bypassing standard venture capital cycles.
Original article

Key Points

  • OpenAI is close to finalizing an up to $30 billion funding round at a $1.25 trillion pre-money valuation, according to people familiar with the deal.
  • Investors from the United Arab Emirates and Coatue are leading the financing, the people said.
  • The financing is being positioned as a bridge ahead of a potential IPO.

OpenAI is closing in on a funding round that could value the artificial intelligence giant at more than $1 trillion ahead of a potential initial public offering.

The San Francisco-based AI company is raising up to $30 billion at a $1.25 trillion valuation, according to people familiar with the deal, who asked not to be named because the details were confidential. That valuation does not include new capital raised.

Investors from the United Arab Emirates are leading the round alongside Coatue, according to the people. The financing is being positioned as an "opportunistic" bridge ahead of a potential IPO.

OpenAI kickstarted discussions for a new funding round after investors approached the company with proposals in September, as CNBC previously reported. OpenAI told investors on Thursday that it is aiming to secure signatures by the end of next week, but the final size of the round is still being determined, the people said.

Alongside the new 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's targeting roughly $600 billion in total compute spend by 2030.

The company confidentially filed its prospectus with the Securities and Exchange Commission in June, but it has not disclosed exactly when it plans to debut.

OpenAI CFO Sarah Friar told employees in August that the AI lab "will be a public company in 2027." The following month, CEO Sam Altman said that "right now would be an ill-advised moment to go public."

Anthropic, OpenAI's chief rival, is also gearing up for what is widely expected to be a massive IPO. The company confidentially filed its prospectus with regulators in June and is actively engaging in meetings with prospective investors, as CNBC previously reported.

The company is reportedly seeking a valuation between $1.5 trillion and $2 trillion in its offering. In May, Anthropic closed a $65 billion funding round at a $965 billion valuation.

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