OpenAI shifts value to US$1.25 trillion as funding talks finalise
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Many investors are closely watching how OpenAI rival Anthropic PBC’s initial public offering, which is expected in November, will be received.
PHOTO: REUTERS
- OpenAI is finalising a fresh funding round of about US$30 billion, with talks now valuing the company at US$1.25 trillion, up from US$1.4 trillion discussed earlier.
- Coatue Management may co-lead the round, while funds from the United Arab Emirates and firms including BlackRock are also in talks, with commitments expected by next week.
- The deal comes as tech shares fall over AI spending worries, while OpenAI delays any IPO until 2027 and investors watch Anthropic's expected November listing.
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OpenAI, which is seeking to raise around US$30 billion (S$38.3 billion) in a fresh funding round, is now targeting a valuation of US$1.25 trillion during the final stages of negotiations, according to sources familiar with the matter.
The ChatGPT maker shifted the value discussed in the talks by US$150 billion, from US$1.4 trillion, according to sources involved with the talks who asked for anonymity while discussing private details.
The fund-raising discussions are ongoing and details could change, said the sources.
OpenAI most recently raised a US$122 billion round in March at an US$852 billion valuation, including the money.
Coatue Management is in talks to co-lead in the round, according to the sources.
OpenAI has also been in talks with multiple investment funds from the United Arab Emirates, among other firms including BlackRock, Bloomberg previously reported.
OpenAI declined to comment.
Coatue did not immediately respond to a request for comment.
The company expects to have commitments from investors finalised by the end of next week, one person said.
CNBC earlier reported the US$1.25 trillion valuation.
Technology stocks have fallen this week after mixed quarterly earnings results from companies including Meta Platforms and Tesla fuelled investor concerns that massive spending on artificial intelligence has gone too far.
Many investors are closely watching how OpenAI rival Anthropic’s initial public offering, which is expected in November, will be received.
OpenAI has pushed back its plans for an IPO until 2027, citing its focus on AI safety efforts. BLOOMBERG