- Funding Talks: AI developer OpenAI reportedly seeks up to $30 billion from private investors before a possible stock-market listing.
- Lower Target: The proposed $1.25 trillion valuation excludes new investment and is $150 billion below the earlier target, Bloomberg reported.
- Competing for Capital: OpenAI competes with AI rival Anthropic for investors before Anthropic’s expected November stock-market debut, Reuters reported.
- UAE Computing: OpenAI is separately negotiating for more computing capacity in the United Arab Emirates, with commercial terms undisclosed.
OpenAI, the maker of the ChatGPT artificial intelligence assistant, is seeking up to $30 billion in private funding before a possible stock-market listing, CNBC reported on October 22. The company’s valuation target had fallen to $1.25 trillion as negotiations continued.
Unnamed investors from the United Arab Emirates and investment firm Coatue are leading the proposed round, according to CNBC’s sources familiar with the deal.
OpenAI told prospective investors on October 22 that it wanted signatures by the end of the following week. The final amount was still being determined, CNBC reported.
A Lower Price for the Proposed Round
OpenAI lowered its valuation target by $150 billion from $1.4 trillion, Bloomberg reported.
The $1.25 trillion figure is a pre-money valuation: the value assigned to the company before the incoming investment is added.
For scale, OpenAI’s March financing closed with $122 billion in commitments. Its $852 billion valuation included the new money. The proposed round is substantially smaller, while its valuation target is higher even before the new investment is counted.
The Financial Times reported weaker client demand in the fundraising process led by investment bank Morgan Stanley, with some earlier investors experiencing investment fatigue.
Competing for Investors Before Anthropic’s Debut
OpenAI is seeking money from investors who are also weighing a public offering by Anthropic, the AI company behind the Claude assistant. Reuters reported on October 19 that OpenAI wanted to secure commitments before Anthropic’s expected mid-November debut, partly because the two companies were approaching a similar investor base.
Some investors saw the accelerated fundraising as a way to secure money that might otherwise go to Anthropic’s offering, according to Reuters’ sources. One person also said OpenAI wanted to finish before Anthropic’s financial disclosures gave investors more information with which to compare the companies and question OpenAI’s financial outlook.
Investors familiar with OpenAI told Reuters that additional capital would help fund infrastructure commitments and strengthen its finances if deteriorating conditions for public offerings delayed its planned 2027 listing.
OpenAI confidentially filed its prospectus with U.S. securities regulators in June. It has not disclosed a debut date and declined to comment on the October 22 funding report.
Separate Talks for UAE Computing Capacity
Alongside the fundraising, OpenAI is negotiating a commercial agreement for additional computing capacity from the UAE, CNBC reported, citing one person. In February, OpenAI told investors it was targeting roughly $600 billion in total computing spending through 2030.
OpenAI announced Stargate U.A.E. in May 2025, a data-centre project that called for Emirati AI firm G42 to finance construction in Abu Dhabi.
The supplier, capacity and commercial terms for the additional computing agreement have not been disclosed.
