OpenAI

Artificial Intelligence · Venture Funding

Funding

OpenAI nears $30B round at $1.25T valuation, led by UAE, Coatue

The price tag dropped from an earlier $1.4T pitch after some backers balked, a rare sign of AI funding fatigue.

• OpenAI is finalizing a funding round of up to $30 billion at a $1.25 trillion pre-money valuation, led by investors from the United Arab Emirates and Coatue.
• OpenAI, maker of ChatGPT, is positioning the raise as a bridge round ahead of a potential 2027 IPO rather than going public immediately.
• The valuation target was cut from $1.4 trillion after some investors resisted the higher price amid what the Financial Times described as funding "indigestion" following earlier mega-rounds.
• Alongside the equity raise, OpenAI is negotiating a separate commercial deal for more computing capacity from the UAE, part of a reported target of roughly $600 billion in total compute spend by 2030.
• A close at $1.25 trillion would mark a roughly 47% jump from the $852 billion post-money valuation OpenAI reached after its $122 billion raise in March 2026.
• OpenAI is racing to lock in commitments before rival Anthropic's expected November IPO, which is reportedly targeting a $1.5-2 trillion valuation, to avoid closer financial comparisons between the two.
• The markdown from $1.4 trillion signals that even the most sought-after AI company is hitting investor pushback, a potential inflection point after years of unquestioned mega-valuations.