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AI Lab Eyes $30B Funding at $1.25T Valuation
23 Oct
Summary
- OpenAI seeks up to $30 billion in new funding.
- Valuation could reach $1.25 trillion pre-money.
- UAE investors may secure computing capacity.
AI pioneer OpenAI is reportedly in advanced discussions to secure a substantial funding round of up to $30 billion. This potential investment is being eyed at a pre-money valuation of $1.25 trillion, according to sources. The round is expected to be led by Coatue and investors based in the UAE.
This significant capital infusion follows previous reports of OpenAI seeking a similar amount at a different valuation. Notably, the UAE funding may include an arrangement to acquire additional computing capacity for OpenAI's operations. The company itself declined to comment on these developments.
If this valuation is achieved, OpenAI would become the most highly valued private company in history. This would set an even higher benchmark for its anticipated initial public offering (IPO), for which confidential paperwork was filed in June. At its last funding round in March, the company was valued at $852 billion post-money.
The potentially record-breaking valuation of OpenAI could also influence the IPO prospects of rival Anthropic. Whispers suggest Anthropic might be closer to a public debut, with market speculation pointing to valuations between $1.5 trillion and $2 trillion. Anthropic's most recent funding in May valued it at $965 billion, a round many believed would be its final private one before going public.
