OpenAI is nearing a funding round that could increase the artificial intelligence giant’s value to more than $1 trillion ahead of a potential initial public offering.
The San Francisco-based AI company is raising up to $30 billion at a valuation of $1.25 trillion, according to people familiar with the deal. The person requested anonymity as the details are confidential. This valuation does not include newly raised capital.
An investor from the United Arab Emirates is leading the round alongside Courtet, the people said. The financing is being positioned as an “opportunistic” bridge ahead of a potential IPO.
As previously reported by CNBC, OpenAI began discussions for a new round of funding after investors approached the company with offers in September. OpenAI told investors Thursday that it aims to secure signatures by the end of next week, but the final size of the round has not yet been determined.
Alongside the new investment, OpenAI is negotiating commercial deals to secure more computing capacity from the UAE, one of the people said. OpenAI told investors in February that it aims to bring total computing spending to about $600 billion by 2030.
The company confidentially filed a prospectus with the Securities and Exchange Commission in June, but has not disclosed a specific date for its debut.
OpenAI Chief Financial Officer Sarah Friar told employees in August that AI Labs “will become a publicly traded company in 2027.” The following month, CEO Sam Altman said it was “unwise to go public at this time.”
OpenAI’s biggest rival, Anthropic, is also gearing up for a widely anticipated major IPO. As previously reported by CNBC, the company confidentially filed a prospectus with regulators in June and is actively meeting with potential investors.
The company is reportedly seeking a valuation of $1.5 trillion to $2 trillion for the offering. In May, Anthropic closed a $65 billion funding round at a valuation of $965 billion.
