OpenAI Pursues $30B Round at $1.25T Valuation Before Public Listing

OpenAI is facing a critical decision point in its race to go public. Instead of moving straight to an initial public offering, the company appears to be finalizing another enormous private funding round. According to sources speaking with CNBC, the AI lab is close to securing up to $30 billion at a pre-money valuation of $1.25 trillion. This move would effectively set a new benchmark for the company’s public debut.

The structure of this deal is distinct. It is being led by Coatue alongside investors based in the United Arab Emirates. Reports indicate that the funding from the UAE may be linked to a separate agreement to expand OpenAI’s computing capacity in the region. While terms are still under negotiation and could shift, the current figures suggest a significant jump from previous valuations. OpenAI itself has declined to comment on the details.

This development follows closely on the heels of similar reports from a month ago. At that time, Bloomberg reported that OpenAI was working on raising $30 billion at a $1.4 trillion valuation. The current reports from CNBC show a slightly lower pre-money figure, but the scale of the capital raise remains consistent. The proximity of these two reports underscores the intensity of the negotiations taking place behind the scenes.

The path to this moment has been rapid. In March, OpenAI completed a major funding round that valued the company at $852 billion on a post-money basis. Since then, the company has moved quickly, filing confidential paperwork for an IPO in June. This suggests that leadership had already begun preparing for a public listing even as they explored further private capital. The new round, if closed, would position the company well above its recent private valuation.

If OpenAI successfully closes this deal, it would break the record for the most valuable private company in history. Commanding a valuation of more than $1 trillion would place it in elite territory, surpassing previous records held by other tech giants. Such a valuation would also raise the stakes for its upcoming IPO. Investors and analysts will likely expect the public offering to reflect this higher value, setting a high bar for the company’s first day on the stock exchange.

The implications of this move extend beyond OpenAI itself. The high valuation could have significant ramifications for Anthropic, a major rival in the AI space. Many industry observers believe Anthropic’s IPO is closer to materializing. Rumors suggest that its public S-1 filing could be released at any moment. The current market dynamics mean that Anthropic’s valuation will likely be compared directly to OpenAI’s new figures.

Anthropic is reportedly seeking a valuation between $1.5 trillion and $2 trillion for its public debut. This follows a $65 billion raise in May, which valued the company at $965 billion. At the time, many believed that round would be the final major private funding before the IPO. Anthropic also filed confidential paperwork in June, mirroring OpenAI’s timeline. The competition between these two AI leaders is intensifying as they both prepare for public markets.

The next steps for OpenAI will depend on the finalization of these terms. If the $1.25 trillion pre-money valuation holds, the company will proceed with the $30 billion raise. This will likely be followed by the public offering, which has already been prepped with confidential filings. The market will be watching closely to see how the new private valuation translates into public performance, and how it affects the pricing of Anthropic’s upcoming entry.