OpenAI seeks $30 billion in funding at $1.25 trillion valuation ahead of IPO

Summary

OpenAI is reportedly close to closing a $30 billion private round led by Coatue and investors from the United Arab Emirates, at a pre-money valuation of $1.25 trillion. This move comes ahead of the company's planned initial public offering (IPO).

Why it matters

With a $1.25 trillion valuation, OpenAI would become the most valuable private company in history. This sets an extremely high expectation threshold for its upcoming IPO. The link between UAE capital and compute capacity deals also signals that AI infrastructure is geopolitically intertwined with capital formation.

Highlights

• The $1.25 trillion pre-money valuation will break the record for the most valuable private company in history.
• The UAE investment may be packaged with a compute capacity deal that blends capital with infrastructure.
• Anthropic is reportedly targeting an IPO valuation of $1.5–2 trillion, intensifying the AI valuation race.

Critical take

The news content is weak: terms are 'still under negotiation,' and OpenAI has declined to comment. The reporting relies on indirect sources from CNBC and Bloomberg without independent verification. The jump from the last $852 billion valuation in March to a $1.25 trillion pre-money valuation in less than eight months raises legitimate questions about whether these figures reflect fundamental metrics or a cycle fueled by investors' 'fear of missing out' (FOMO).