OpenAI is working toward a funding package that would push its valuation above $1 trillion, with people familiar saying the company is arranging as much as $30 billion with a $1.25 trillion price tag. That number is set without counting the fresh capital coming in.
Investors from the United Arab Emirates are leading the syndicate with Coatue. Talks kicked off after investors approached OpenAI with proposals in September, and the company told backers on Thursday it wants to lock commitments by the close of next week, though the final check size is still being set.
The financing is being framed as an "opportunistic" bridge before a potential public listing. OpenAI confidentially filed its prospectus with the SEC in June, but it has not said when it intends to list.
Separately, the company is negotiating a commercial arrangement to add computing capacity sourced from the UAE. Back in February, OpenAI told investors it is aiming for about $600 billion in total compute spending by 2030.
When high-stakes deals make headlines, stay grounded with the free Market Briefs newsletter that explains markets simply.
In August, OpenAI CFO Sarah Friar told employees the company "will be a public company in 2027." In September, CEO Sam Altman said that "right now would be an ill-advised moment to go public."
Anthropic, described as OpenAI's chief rival, also confidentially filed in June and is actively meeting prospective investors. It is reportedly eyeing an IPO that would value it between $1.5 trillion and $2 trillion, after closing a $65 billion round in May at a $965 billion valuation. The bottom line: two AI leaders are signaling huge capital needs for compute and growth, and the timing of their listings could shape when that AI trade shows up in your index fund.
Because tech valuations can feel opaque, get five-minute clarity each morning by signing up for the free Market Briefs newsletter.
