OpenAI working on new $30B raise at $1.25T valuation ahead of IPO

OpenAI is reportedly close to raising another huge amount of money from private investors instead of moving ahead with an initial public offering (IPO). The AI company is working to raise up to $30 billion at a pre-money valuation of $1.25 trillion. Coatue and investors from the United Arab Emirates (UAE) are leading the funding round, sources told CNBC.

This follows a similar report by Bloomberg a month ago. That report said the AI company was working to raise $30 billion at a valuation of $1.4 trillion. Both news outlets report that the terms are still being discussed, so the numbers could change. CNBC also reports that the UAE investment could be linked to a deal that would give OpenAI access to more computing power from the UAE. OpenAI declined to comment.

If OpenAI reaches a valuation of more than $1 trillion in this funding round, it would become the most valuable private company ever. This would also set an even higher target for OpenAI's planned IPO. OpenAI filed confidential paperwork for an IPO in June. Its previous funding round, in March, valued the company behind ChatGPT at $852 billion after the investment.

This high valuation could also affect Anthropic's planned IPO, which many people believe may happen soon. Rumors suggest that Anthropic could publicly file its S-1 registration document at any time. CNBC reports that the latest reports say Anthropic is seeking a valuation of $1.5 trillion to $2 trillion when it first sells shares to the public. In May, Anthropic raised $65 billion at a valuation of $965 billion. At the time, many people thought this would be its last major funding round before an IPO. Anthropic also filed confidential paperwork in June.