Hajra Naz
OpenAI is reportedly closing in on another massive round of private financing rather than moving straight toward an initial public offering. Sources told CNBC that the artificial intelligence research firm is negotiating to raise to $30 billion at a pre-money valuation of $1.25 trillion. The investment round is expected to be led by investment firm Coatue alongside institutional investors from the United Arab Emirates.
This potential financing follows a similar report from Bloomberg last month indicating that OpenAI was seeking $30 billion at a $1.4 trillion valuation. Terms remain subject to ongoing negotiations and could change before closing. CNBC noted that the UAE investment may be tied to a commercial agreement securing additional compute infrastructure for OpenAI. OpenAI declined to comment on the funding talks.
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If OpenAI secures a valuation above $1 trillion, it will set a record as the most valuable private company in history. A valuation of that magnitude would also set a high benchmark for the company’s eventual public market debut. OpenAI filed confidential IPO documentation in June, following a funding round in March that valued the ChatGPT developer at $852 billion post-money.
A record-setting valuation for OpenAI could also impact rival Anthropic, which is widely expected to pursue an initial public offering. Industry observers speculate that Anthropic could publicly release its S-1 filing in the coming days.
CNBC reported that Anthropic is seeking a valuation between $1.5 trillion and $2 trillion for its public debut. Anthropic raised $65 billion at a $965 billion valuation in May, which was expected to be its final private capital raise, and submitted its own confidential IPO paperwork in June.
