OpenAI nears reported $30B funding round at $1.25T valuation

OpenAI is close to an up to $30 billion funding round at a reported $1.25 trillion pre-money valuation, according to CNBC, which cited people familiar with the confidential discussions. The OpenAI $30B funding round is being framed as interim private financing before a potential initial public offering, with UAE investors and investment firm Coatue said to be leading it.

The transaction has not been reported as complete. CNBC said OpenAI told investors it was aiming to obtain signatures by the end of the following week, while the final size of the round was still being determined. A $1.25 trillion pre-money valuation means the figure excludes any new capital that may be raised.

Is OpenAI’s $30 billion funding round final?

No. CNBC’s October 22 report described the financing as nearing completion, not closed, and attributed its terms and participants to unnamed people familiar with the matter. OpenAI did not provide a timeline for a stock-market debut in the reporting cited by CNBC.

The new report follows an earlier, less settled set of terms. Bloomberg reported in September that OpenAI was targeting at least $30 billion at a valuation of about $1.4 trillion, also excluding new money. Reuters, reporting on Bloomberg’s account, said at the time that the talks were at an early stage and the terms could change. The later CNBC report’s $1.25 trillion pre-money figure and still-undetermined round size show that those discussions remained fluid.

CNBC reported that potential investors approached OpenAI with proposals in September. The same report said OpenAI is separately negotiating a commercial arrangement for additional computing capacity from the UAE. According to CNBC, OpenAI told investors in February it was targeting roughly $600 billion in total compute spending by 2030. Neither the commercial arrangement nor its terms were reported as finalized.

What does this mean for OpenAI’s IPO plans?

OpenAI confidentially filed a prospectus with the Securities and Exchange Commission in June, CNBC reported, but the company has not disclosed when it expects to list. CNBC also reported that Chief Financial Officer Sarah Friar told employees in August that OpenAI would be public in 2027. In September, CEO Sam Altman said that going public at that point would be ill-advised.

The reported bridge financing would give OpenAI another private-market route to raise capital while its IPO timing remains open. The reporting did not identify the UAE investors, and the final amount remained unresolved.

This story draws on original reporting from SiliconANGLE.