OpenAI is nearing a funding round of up to USD 30 billion at a USD 1.25 trillion pre-money valuation, with investors from the United Arab Emirates and US investment firm Coatue leading the financing, CNBC reported on October 22, citing people familiar with the matter.
The proposed investment comes as the ChatGPT maker seeks additional capital ahead of a potential initial public offering (IPO). The funding terms are still being finalized, and the round's final size could change.
Investors from the UAE and Coatue are expected to lead the financing, according to the report. OpenAI is also negotiating a separate commercial deal that could secure additional computing capacity from the UAE.
The potential investment will help the firm build its AI infrastructure and prepare for a likely future stock offering. However, the exact investment amount and deal terms remain unclear for now.
Reports say OpenAI has invited potential investors to decide by October 30. The firm may raise less than USD 30 billion.
The latest valuation target of USD 1.25 trillion is lower than the USD 1.4 trillion valuation previously discussed with potential investors. This reflects increased concerns about the costs of creating and maintaining artificial intelligence.
The suggested valuation of USD 1.25 trillion does not account for the new investment. If OpenAI raises a total of USD 30 billion, its valuation would be around USD 1.28 trillion.
OpenAI's valuation from the March 2026 funding process was USD 852 billion, including the new investment.
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The latest fundraising round is viewed as an interlude before OpenAI's planned IPO, expected in 2027. The firm reportedly filed confidential documents to list.
It comes as OpenAI's arch-rival AI firm, Anthropic, also prepares for a public listing. Investors are closely watching how the two AI firms proceed with their listings.
Additionally, concerns about AI infrastructure spending have cast a shadow over technology valuations. OpenAI has refused to comment on its planned fundraising round. Reportedly, Coatue has not yet responded to questions.