OpenAI Nears $30 Billion Raise at a $1.25 Trillion Valuation
The ChatGPT maker would become the most valuable private company ever. The money comes as investors ask how AI labs will pay for the boom.
OpenAI is close to raising up to $30 billion in a new private funding round, CNBC reported Thursday. The deal would value the company at $1.25 trillion before the new money arrives.
The round is being led by the investment firm Coatue and investors from the United Arab Emirates, according to CNBC, which cited people familiar with the confidential talks. OpenAI declined to comment.
OpenAI told prospective investors Thursday it wants to secure signatures by the end of next week, CNBC reported. Terms are still being negotiated and could change.
A $1.25 trillion valuation would make OpenAI the most valuable private company ever. It is also a markdown: Bloomberg reported a month ago that OpenAI was seeking the same $30 billion at a $1.4 trillion valuation, about $150 billion more.
Money plus machines
The UAE money may come with a second deal. OpenAI is in talks to secure additional computing capacity from the Emirates, a person familiar with the discussions told CNBC. The company has told investors it plans to spend $600 billion on compute by 2030.
The UAE investors first approached OpenAI with proposals in September, Dealroom reports. SoftBank and Abu Dhabi’s MGX have also held talks about joining the round, according to Cryptopolitan.
A high bar for the IPO
The round would set a steep private price for OpenAI’s eventual public listing. The company filed confidential paperwork for an IPO in June. Its last round, in March, landed $122 billion at an $852 billion post-money valuation, backed by Amazon, SoftBank and Nvidia.
Anthropic is watching the number closely. It raised $65 billion at a $965 billion valuation in May and is reportedly targeting $1.5 trillion to $2 trillion for its own public debut, with a public S-1 filing rumored to be near, CNBC reports.
The news landed on a rough day for AI stocks. The Nasdaq fell 2.6% on Thursday, its worst day since June, on doubts about how tech companies will pay for the AI buildout. Meta slid nearly 8% after reporting its first cash outflow in more than a decade.
