OpenAI nears $30 billion funding round at $1.25 trillion valuation ahead of IPO

OpenAI is closing in on a funding round of up to $30 billion at a staggering $1.25 trillion valuation, as the ChatGPT maker prepares for a potential stock market debut in 2027. The financing, led by investors from the United Arab Emirates and investment firm Coatue, would give the San Francisco-based AI company another enormous injection of capital as it races to expand its computing infrastructure and compete for dominance in artificial intelligence.

The news comes just three days after Reuters reported that OpenAI was racing to raise roughly $30 billion at a valuation exceeding $1.4 trillion before rival Anthropic’s expected stock market debut in mid-November. CNBC’s latest $1.25 trillion pre-money valuation suggests the financing terms may have shifted as negotiations progressed, though the reason for the difference remains unclear.

“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,” CNBC reported.

The proposed valuation is particularly striking. At $1.25 trillion before the new investment, OpenAI would be valued at roughly $1.28 trillion if it raises the full $30 billion. That would put the privately held company in the same financial territory as some of the world’s largest publicly traded technology businesses.

According to CNBC, which cited people familiar with the confidential discussions, OpenAI told prospective investors Thursday that it hopes to secure commitments by the end of next week. The final amount remains under negotiation, meaning the deal’s size and terms could still change.

The funding is being positioned as an “opportunistic” bridge to a potential initial public offering rather than another conventional venture capital round.

OpenAI Chief Financial Officer Sarah Friar has reportedly told employees that a public listing is likely in 2027. The company has already filed confidentially for an IPO, setting the stage for what could become one of the largest stock market debuts in technology history.

UAE Investment Could Bring More Than Money

UAE investors’ involvement goes beyond financing. OpenAI is negotiating a separate commercial agreement that would provide access to additional computing capacity in the Emirates, according to CNBC.

That arrangement could be just as significant as the investment itself.

Training and operating advanced AI models require enormous amounts of computing infrastructure, electricity, and specialized chips. Securing enough capacity has become a central challenge for companies competing to build and deploy increasingly capable AI systems.

The UAE has emerged as an important source of capital for American AI companies seeking to finance their infrastructure ambitions. Earlier this month, Bloomberg reported that UAE investment funds, including Abu Dhabi-based MGX, were discussing commitments of up to $10 billion toward a proposed OpenAI financing.

The latest negotiations suggest the relationship could deepen, giving OpenAI access to both investment capital and infrastructure outside the United States.

The proposed round follows OpenAI’s massive $122 billion financing in March, which valued the company at $852 billion after the investment. That deal attracted backing from SoftBank, Andreessen Horowitz, MGX, Coatue, and several other major institutional investors.

The latest reported valuation would represent a substantial increase in OpenAI’s private-market value in less than seven months.

The fundraising arrives at a sensitive moment for the broader AI industry. Rising interest rates, concerns about infrastructure spending, and scrutiny of heavily indebted AI companies such as CoreWeave have made investors increasingly selective about where they commit capital.

OpenAI is facing pressure from rival Anthropic, which is preparing for an anticipated IPO that could test public-market demand for AI companies carrying extraordinary valuations.

Reuters reported earlier this week that OpenAI was accelerating its fundraising efforts ahead of Anthropic’s expected listing. Earlier reports had placed OpenAI’s potential valuation above $1.4 trillion, making the newly reported $1.25 trillion figure a significant development in the negotiations.

For OpenAI, the stakes extend beyond securing another funding commitment. A successful round would establish a new valuation benchmark ahead of its IPO and provide financial backing for further investment in AI models, chips, and data centers.

The larger question is whether public-market investors will be prepared to support the valuations private investors are assigning to the biggest AI companies.

OpenAI’s next funding round could offer an early answer.

OpenAI Co-founder and CEO Sam Altman