OpenAI Seeks to Raise $30 Billion at $1.25 Trillion Pre-Money Valuation Ahead of Investment
Key Facts
OpenAI is working to raise up to $30 billion at a pre-money valuation of $1.25 trillion in a round led by Coatue and investors in the UAE, according to a report published by TechCrunch, citing CNBC, on October 22. A pre-money valuation is set before the proposed round’s funds are added. The financing terms remain under negotiation and could change before any deal is completed. The figure therefore does not represent closed funding or a final valuation for the company. The discussions put the company on the path to new private financing, while OpenAI has not set a timetable for an initial public offering.
The valuation cited in the report is down from an earlier estimate reported about a month ago, when coverage cited by TechCrunch said Bloomberg had reported that OpenAI was seeking to raise $30 billion at a $1.4 trillion valuation. The newer figure of $1.25 trillion refers to the pre-money valuation, so it cannot be compared with the earlier round’s post-money valuation without accounting for the different basis. OpenAI announced on March 31 that it had closed a $122 billion funding round at a post-money valuation of $852 billion. According to the company, the round included strategic partners Amazon, NVIDIA and SoftBank, with Microsoft continuing its participation. These figures provide context for the scale of financing and valuations being discussed around the company, but do not settle the terms of the new round.
The proposed round raises the possibility of participation by investors in the UAE: CNBC said their funding may be tied to a separate agreement to secure additional computing capacity for OpenAI from the UAE. That arrangement remains a possibility connected to the discussions, not an announced deal or a final commitment. Computing capacity is significant in light of an investment target OpenAI announced in February: cumulative investment of about $600 billion in computing infrastructure by 2030. In its March round announcement, the company said it generates monthly revenue of $2 billion and that its revenue is growing four times faster than that of companies it linked to the internet and mobile eras, including Alphabet and Meta. Those statements put capital and computing needs at the center of the company’s expansion, without establishing how much the proposed round would provide for either.
The financing discussions come as OpenAI and Anthropic compete for a similar pool of investors, according to a Reuters report published via MarketScreener. The report said OpenAI is seeking to accelerate securing investor commitments ahead of its rival Anthropic’s expected IPO in mid-November. It said SoftBank, MGX and other existing investors were discussing joining a round of about $30 billion. It also pointed to concerns over higher interest rates, volatility in technology stocks and growing scrutiny of AI company valuations. This places the fundraising effort within a competition for capital at a time when the sector’s valuations are facing greater scrutiny.
The IPO path does not establish a specific date in 2027. OpenAI said it had confidentially filed paperwork with the US Securities and Exchange Commission in June, but had not set a timetable for an offering, adding that it could remain a private company for some time because some things are easier in that structure. The company also said it wanted to retain the option of an earlier offering if that proved best, while Sam Altman described an IPO as the likeliest path given the company’s size and need for substantial capital. On September 12, Altman said OpenAI would not go public in 2026. The proposed private round remains separate from the decision on IPO timing, which the company said has not been settled.