OpenAI Chases Record Valuation
The AI leader is negotiating a massive private round that would top one trillion dollars before its public debut.
By Lucia Herrera ·
OpenAI is betting big on staying private for a little longer. Instead of rushing to the stock market, the company is reportedly closing in on a new funding round that could value it at $1.25 trillion. This move signals a preference for private capital over a public listing at this stage.
According to sources who spoke with CNBC, the round is expected to raise up to $30 billion. It will be led by Coatue and include investors from the United Arab Emirates. These terms are still under negotiation, so the final numbers could shift. A month earlier, Bloomberg reported a similar deal but at a slightly higher $1.4 trillion valuation.
The deal with UAE investors may include more than just cash. Reports suggest the funding could be tied to a separate agreement to secure additional computing capacity for OpenAI from the region. OpenAI has declined to comment on the developing situation.
If this round goes through as expected, OpenAI would become the most valuable private company in history. That distinction sets a high bar for its upcoming initial public offering. The company filed confidential paperwork for an IPO in June. At that time, its last funding round in March had valued the ChatGPT maker at $852 billion on a post-money basis.
A valuation above $1 trillion would also impact the competitive landscape. It raises the stakes for Anthropic, which many believe is closer to going public. Rumors indicate that Anthropic might file its public S-1 document at any moment. CNBC reports that Anthropic is seeking a valuation between $1.5 and $2 trillion for its market debut.
Anthropic recently raised $65 billion in May at a $965 billion valuation. Many viewed that round as its final major private raise before listing. Like OpenAI, Anthropic also filed confidential paperwork for an IPO in June. Both companies are now navigating complex negotiations as they prepare for their next major financial steps.
The race to the top of the valuation chart is intensifying. Both OpenAI and Anthropic are leveraging their recent private successes to position themselves for potentially historic public offerings. Investors are watching closely to see how these high valuations are received by the broader market.
Source: TechCrunch
