OpenAI Nears $30 Billion Round at $1.25 Trillion Valuation as UAE Investors Lead
Updated
Updated · CNBC · Oct 22
OpenAI Nears $30 Billion Round at $1.25 Trillion Valuation as UAE Investors Lead
2 articles · Updated · CNBC · Oct 22
Summary
OpenAI told investors it aims to secure signatures by the end of next week on a funding round of up to $30 billion, valuing the company at $1.25 trillion before the new cash.
UAE investors are leading the deal alongside Coatue, and OpenAI is also negotiating a commercial agreement to lock in more computing capacity from the UAE.
The company framed the financing as an opportunistic bridge after investors approached it in September, ahead of a potential IPO that remains unscheduled.
OpenAI confidentially filed with the SEC in June; CFO Sarah Friar told staff in August it would be public in 2027, though CEO Sam Altman said in September now would be an ill-advised time to list.
The raise comes as rival Anthropic also prepares for a blockbuster IPO after a $65 billion round in May at a $965 billion valuation and is reportedly targeting $1.5 trillion to $2 trillion in its offering.
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.