OpenAI raises $30 billion at $1.25 trillion valuation

OpenAI is reportedly raising up to $30 billion in a new funding round led by Co2, associated with the Lafond brothers, and investors from the UAE. The round values the company at $1.25 trillion pre-money, a figure lower than the $1.5 trillion target previously cited by CNBC sources and distinct from a $1.4 trillion valuation reported by Bloomberg a month ago. Terms are still being negotiated, with the UAE investment potentially linked to a deal to secure additional computing capacity for OpenAI. If completed, this round would make OpenAI the most valued private company in history, significantly raising the bar for its forthcoming IPO, for which confidential paperwork was filed in June following a March raise that valued the company at $852 billion post-money.

Major existing investors, including Sequoia, Altimeter, and Dragonfly, are reportedly not participating significantly in this round. To compensate investors for the lower entry valuation, OpenAI is expected to offer liquidation preferences and minimum interest rates of 8% to 15% for the six-month period until a potential IPO. Analysts suggest OpenAI is rushing to secure capital before Anthropic’s IPO to avoid unfavorable comparisons, regardless of whether Anthropic’s debut underperforms or succeeds. Anthropic is also preparing for a public debut, with CNBC reporting it seeks a $1.5 to $2 trillion valuation. Anthropic raised $65 billion at a $965 billion valuation in May and filed confidential paperwork in June. The broader AI sector faces a capital crunch, with rising interest rates making debt financing for data centers more expensive and equity rounds harder to close.