TLDR
- OpenAI is close to closing a round of up to $30 billion at a $1.25 trillion pre-money valuation.
- Investors from the United Arab Emirates and Coatue are leading the deal.
- The valuation is down from a previously reported $1.4 trillion, according to the Financial Times.
- OpenAI is also negotiating a deal for more computing capacity from the UAE.
- The company filed confidentially for an IPO in June, and its CFO says it will be public in 2027.
OpenAI is close to finalizing a funding round of up to $30 billion. The round values the company at $1.25 trillion before new money is counted, according to people familiar with the deal.
The sources asked not to be named because the details are confidential. CNBC reported the news on Thursday.
Investors from the United Arab Emirates are leading the financing. Coatue, a U.S. investment firm, is also taking part.
The round is being described as an āopportunisticā bridge ahead of a possible initial public offering. It would give the San Francisco-based company more capital before it goes public.
Valuation Cut From Earlier Reports
The Financial Times reported that OpenAI lowered its valuation target by $150 billion. The earlier reported figure was $1.4 trillion.
The new number is still above OpenAIās last reported valuation of $852 billion in March 2026. Some investors were hesitant to invest at the higher price, the report said.
Investor demand has reportedly been weaker than in past rounds. Investors are said to be more cautious about the cost of building AI infrastructure.
Some worry that heavy spending on data centers and computing power may not pay off. The report also said some may be feeling funding fatigue after putting large sums into AI companies.
The news comes as U.S. tech stocks face a sell-off. Meta Platforms fell about 7% on Wednesday after its third-quarter results.
Meta beat revenue estimates but faced concerns over higher capital spending. It raised the low end of its spending forecast from $130 billion to $135 billion, while the upper end stayed at $145 billion.
Computing Deal and IPO Plans
OpenAI is also negotiating a commercial deal to secure more computing capacity from the UAE, according to one person familiar with the talks. In February, the company told investors it is targeting about $600 billion in total compute spending by 2030.
OpenAI confidentially filed its prospectus with the Securities and Exchange Commission in June. It has not said when it plans to debut.
CFO Sarah Friar told employees in August that OpenAI āwill be a public company in 2027.ā The next month, CEO Sam Altman said āright now would be an ill-advised moment to go public.ā
Rival Anthropic also filed confidentially in June and is meeting with prospective investors. It is reportedly seeking a valuation between $1.5 trillion and $2 trillion in an offering.
In May, Anthropic closed a $65 billion funding round at a $965 billion valuation.
OpenAI began talks on the new round after investors approached it with proposals in September. On Thursday, it told investors it hopes to secure signatures by the end of next week, though the final size of the round is still being determined.
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