OpenAI Seeks $30 Billion at $1.25 Trillion Valuation, Delaying IPO
Updated
Updated · TechCrunch · Oct 22
OpenAI Seeks $30 Billion at $1.25 Trillion Valuation, Delaying IPO
3 articles · Updated · TechCrunch · Oct 22
Summary
$30 billion is the size of the private round OpenAI is now pursuing, with CNBC reporting the ChatGPT maker is close to raising the money at a $1.25 trillion pre-money valuation.
Coatue and investors in the UAE are expected to lead the financing, which could also include a separate arrangement to secure additional computing capacity from the UAE.
Terms are still being negotiated and could change; Bloomberg reported a month ago that OpenAI was targeting the same $30 billion raise at a higher $1.4 trillion valuation.
A valuation above $1 trillion would make OpenAI the most valuable private company on record and set a higher bar for its IPO, after it confidentially filed in June and was last valued at $852 billion post-money in March.
That benchmark could ripple across the AI sector, where Anthropic also filed confidentially in June after a May round valued it at $965 billion and is reportedly eyeing a $1.5 trillion to $2 trillion IPO valuation.
With a projected $278 billion cash burn, can OpenAI convince public markets to fund its trillion-dollar AI ambitions?
How will OpenAI's massive UAE compute expansion reshape global data sovereignty and the future of banking technology?
As AI labs demand trillions for infrastructure, are we witnessing the dawn of a new tech era or an unsustainable capital bubble?
Inside OpenAI’s $30 Billion Raise at a $1.4 Trillion Valuation: Risks, Rivalry, and the Future of AI
Overview
In 2026, OpenAI launched a $30 billion funding round at a $1.4 trillion valuation, aiming to secure capital before Anthropic’s IPO. This move intensified the AI funding race, with both companies absorbing nearly half of global venture capital and leaving less for early-stage startups. OpenAI’s heavy spending on compute infrastructure led to falling margins and large losses, sparking internal concerns about the sustainability of its $1.4 trillion commitments. Meanwhile, circular financing between AI labs and hardware vendors like Nvidia raised questions about true market demand. These risks, along with public market volatility, prompted OpenAI to delay its IPO to 2027.