OpenAI Reportedly Seeks $30 Billion at $1.25 Trillion Valuation Ahead of IPO
US artificial intelligence company OpenAI is reportedly working on a new private funding round of up to $30 billion. The pre-money valuation could reach $1.25 trillion.
OpenAI, the US artificial intelligence company behind ChatGPT, is working on a new private funding round of up to $30 billion, according to TechCrunch, citing sources who spoke to CNBC. Investment firm Coatue would lead the round, with investors from the United Arab Emirates also taking part. The pre-money valuation is put at $1.25 trillion, meaning OpenAI would keep raising private capital before a public stock offering (IPO).
What came before
A month ago, Bloomberg reported a similar plan: also $30 billion, but at a $1.4 trillion valuation. Both outlets say the terms are still being negotiated and may change. OpenAI declined to comment.
CNBC reports that the UAE funding could be paired with a deal giving OpenAI additional computing capacity from the country.
Why it matters
If the valuation exceeds $1 trillion, OpenAI would become the most highly valued private company ever. It would also raise the bar for the company's upcoming IPO. OpenAI filed confidential IPO paperwork in June; its previous funding round in March valued it at $852 billion post-money.
The high valuation could also affect rival Anthropic's IPO, which many believe is closer to happening. According to CNBC, Anthropic is seeking a valuation of $1.5 to $2 trillion for its public debut. In May the company raised $65 billion at a $965 billion valuation, and it also filed confidential IPO paperwork in June.
