Full Breakdown
OpenAI Nears $30 B Funding Round Valued at $1.25 T, Positioning for 2027 IPO
By Drooid · · How we work
Funding Round Overview
People familiar with the negotiations say OpenAI is close to securing a private financing of up to $30 billion at a $1.25 trillion pre-money valuation. The round is being led by Coatue and investors from the United Arab Emirates (UAE). The financing is described as an “opportunistic” bridge that would precede a potential initial public offering. OpenAI has asked prospective backers to sign commitments by the end of next week, though the final size of the round remains under discussion.
Valuation Context and Prior Raises
The proposed $1.25 trillion valuation would exceed the $852 billion post-money valuation from the March financing that raised $122 billion. Earlier reports had suggested a valuation above $1.4 trillion, indicating that the terms are still evolving. If finalized, the valuation would make OpenAI the most-valued private company ever. The company filed a confidential IPO prospectus with the U.S. Securities and Exchange Commission in June, following a similar filing by rival Anthropic, which is targeting a $1.5-to-$2 trillion valuation for its own offering.
Strategic Deal for Computing Capacity
Alongside the equity raise, OpenAI is negotiating a commercial agreement with the UAE that would secure additional computing capacity. One source said the deal would provide infrastructure support beyond cash, helping the lab meet its target of roughly $600 billion in total compute spend by 2030.
Executive Outlook on IPO Timing
Chief Financial Officer Sarah Friar told staff in August that a public listing is likely to occur in 2027.
Next Steps
OpenAI aims to have investor signatures by the end of next week, after which the final round size will be determined. The company has not disclosed a specific IPO date, but the confidential filing and executive comments suggest a 2027 debut remains the target timeline.