OpenAI nears $30 billion funding round at $1.25 trillion valuation

Summarised from 3 outlets · Updated 22 Oct, 23:20 · Archive

OpenAI is close to finalising a funding round worth up to $30 billion that values the company at $1.25 trillion.

OpenAI is closing in on a funding round that could value the artificial intelligence giant at $1.25 trillion, according to sources familiar with the matter. The San Francisco-based company is raising up to $30 billion in the round, which is led by investors from the United Arab Emirates alongside Coatue. The financing is being positioned as an 'opportunistic' bridge ahead of a potential initial public offering.

OpenAI told investors on Thursday that it is aiming to secure signatures by the end of next week, though the final size of the round is still being determined. Alongside the new investment, OpenAI is negotiating a commercial deal to secure more computing capacity from the UAE. The company previously told investors in February that it is targeting roughly $600 billion in total compute spend by 2030.

OpenAI confidentially filed its prospectus with the Securities and Exchange Commission in June. OpenAI's CFO Sarah Friar told employees in August that the company 'will be a public company in 2027', though CEO Sam Altman said in September that 'right now would be an ill-advised moment to go public'. If the round closes at the reported valuation, OpenAI would become the most highly valued private company ever.

OpenAI nears $30 billion funding round at $1.25 trillion valuation — Image: Financial Times

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How it is being reported

OpenAI working on new $30B raise at $1.25T valuation ahead of IPOShould OpenAI command an over $1 trillion valuation with this round, it would break records as the mostly highly valued private company ever.TechCrunch · 22 Oct, 23:08
OpenAI trims valuation target to $1.25tn after pitching higher priceAI lab floated $1.4tn price tag earlier this month, according to documents seen by the FTFinancial Times · 22 Oct, 22:50
OpenAI nears up to $30 billion funding round at $1.25 trillion valuation led by UAE investorsOpenAI is close to finalizing a new funding round that is meant to be a bridge to its 2027 IPO, sources familiar with the matter tell CNBC.CNBC · 22 Oct, 21:16

In this story: OpenAI · United Arab Emirates · Coatue · Sam Altman · Sarah Friar

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