OpenAI is closing in on a massive private funding round rather than rushing into a public stock market debut, according to TechCrunch. The company is working on raising up to $30 billion at a 1.25 trillion pre-money valuation, with Coatue and investors in the UAE leading the effort, sources told CNBC on October 23, 2026.
Key takeaways
- OpenAI is close to securing a private funding round of up to $30 billion.
- The company is eyeing a pre-money valuation of $1.25 trillion, led by Coatue and UAE investors.
- OpenAI and rival Anthropic both filed confidential IPO paperwork in June.
- Anthropic is reportedly seeking a valuation between $1.5 and $2 trillion for its own public debut.
What is the projected OpenAI valuation?
Terms for the new funding round are still under negotiation and could change. A month prior to this news, Bloomberg reported that the AI lab was aiming for a $30 billion raise at a $1.4 trillion valuation. CNBC notes that the UAE financial backing could also include an agreement to secure additional computing capacity for the ChatGPT maker.
How does this affect the Anthropic IPO?
If OpenAI reaches a valuation exceeding $1 trillion, it will break records as the most valued private company in history. That milestone raises the stakes for its forthcoming IPO, following confidential paperwork filed in June after a March round valued the business at $852 billion post-money. Meanwhile, rumors suggest that Anthropic could file its public S-1 paperwork at any moment. Anthropic previously raised $65 billion at a $965 billion valuation in May and filed its own confidential IPO paperwork in June, with reports pointing to a target public valuation between $1.5 and $2 trillion.
What happens next?
Negotiations for the massive funding round continue to evolve, and OpenAI has declined to comment on the reports. Investors and market watchers are keeping a close eye on both OpenAI and Anthropic as private funding rounds push company valuations to unprecedented heights ahead of their anticipated public offerings.
Frequently asked questions
OpenAI is working on raising up to $30 billion in private funding, according to reports from CNBC and TechCrunch.
The AI lab is aiming for a pre-money valuation of $1.25 trillion, though an earlier report from Bloomberg mentioned a $1.4 trillion valuation.
The funding round is being led by Coatue and investors based in the UAE, who may also provide extra computing capacity.
OpenAI filed confidential paperwork for an initial public offering in June, following a March funding round that valued the company at $852 billion post-money.
Anthropic is seeking a valuation between $1.5 and $2 trillion for its public debut, and rumors suggest its public S-1 filing could arrive soon.
Based on reporting by TechCrunch. Read the original article
