OpenAI pushes toward massive private funding round
The AI developer is looking to raise billions in new capital from overseas investors, bypassing a public offering for now.
By Amy Swan ·
Artificial intelligence companies are currently seeking private capital at unprecedented speeds, and OpenAI is leading that charge by bypassing public markets for the moment. Reports emerging on Thursday indicate the developer is preparing for another massive injection of private funding rather than proceeding immediately with a stock market debut.
According to sources familiar with the matter, OpenAI is negotiating to secure up to $30 billion in new financing. The potential round, which is being led by Coatue and investors based in the UAE, carries a pre-money valuation of $1.25 trillion. While discussions regarding the specific terms remain ongoing and could shift, this move aligns with previous reports suggesting a raise of that size was in the works. In addition to the capital infusion, the involvement of investors from the UAE could be paired with an agreement to provide additional computing capacity for the company. OpenAI declined to comment on the matter.
If the proposed valuation is finalized, OpenAI would become the most valuable private company in history. Such a figure would set a significant benchmark for the company's future public offering. OpenAI submitted confidential paperwork for an IPO back in June, following a fundraising round in March that valued the maker of ChatGPT at $852 billion on a post-money basis.
The financial maneuvers at OpenAI also carry weight for its primary competitor. Anthropic is reportedly seeking a valuation between $1.5 trillion and $2 trillion for its own public debut, a target that would exceed the figures being discussed for OpenAI. Anthropic raised $65 billion in May at a $965 billion valuation, a round many believed would be its last private raise before going public.
Both companies filed confidential paperwork for public listings in June of this year. As these valuations climb, the stakes regarding the eventual IPOs for both firms continue to rise, with the market closely watching how these figures are finalized.
Source: TechCrunch
