OpenAI nears up to $30 billion funding round at $1.25 trillion valuation led by UAE investors

OpenAI is reportedly on the verge of securing a massive round of private funding, potentially bypassing an IPO altogether. The AI lab is in talks to raise up to $30 billion at a pre-money valuation of $1.25 trillion, according to sources cited by CNBC. This comes after a Bloomberg report from a month ago which stated OpenAI was aiming for a $30 billion raise at a $1.4 trillion valuation.

However, the terms of the deal are still being negotiated, so they could change. The UAE is also reportedly involved in the funding, possibly securing additional computing capacity for OpenAI. Should OpenAI manage to achieve a valuation of over $1 trillion with this round, it would break records as the most valuable private company in history.

This valuation would also set a new benchmark for OpenAI's upcoming IPO. OpenAI filed confidential paperwork for an IPO in June, following a $852 billion valuation in March. Should the company's valuation continue to soar, it might influence the trajectory of Anthropic's IPO, which is reportedly seeking a $1.5 to $2 trillion valuation.

Anthropic raised $65 billion at a $965 billion valuation in May and filed confidential paperwork for an IPO in June.