OpenAI is reportedly in advanced negotiations for a new funding round of up to $30 billion. The investment is expected to be led by backers from the United Arab Emirates, with participation from the U.S. venture capital firm Coatue. The company aims to finalize the deal by the end of next week.
This capital injection is intended as a bridge round to support ongoing business operations while the company prepares for an initial public offering. If successful, the deal would bring OpenAI's valuation to $1.25 trillion. Additionally, the company is discussing a commercial agreement with the UAE investors to secure increased compute capacity in the Middle East.
The company previously raised $122 billion in March from investors including Amazon, SoftBank, and Nvidia at a post-money valuation of $852 billion. OpenAI filed a confidential prospectus with the SEC in June. While there were earlier expectations of an IPO this year, CFO Sarah Friar stated in August that the company plans to go public in 2027.
CEO Sam Altman has recently indicated that an IPO this year would be ill-advised. Meanwhile, competitor Anthropic is reportedly planning its own public offering, seeking a valuation between $1.5 trillion and $2.5 trillion, with potential plans to go public as early as the upcoming Thanksgiving holiday.
