OpenAI trims its price to $1.25T to land a $30B UAE-led round
OpenAI is closing in on up to $30B led by UAE investors and Coatue, after some investors balked at its earlier $1.4T ask.
OpenAI just took $150B off its asking price and is still on track for one of the richest private valuations ever. The company is reported to be close to raising up to $30B at $1.25T pre-money, or about $1.28T with the new cash, according to CNBC. UAE investors and Coatue are set to lead. The Financial Times reports that OpenAI first pitched about $1.4T, but some investors resisted.
That is still about 47% above the $852B valuation from its $122B round in March. Abu Dhabi's MGX is discussing a syndicate of UAE funds that could put in up to $10B, and BlackRock has also been in talks. OpenAI is also negotiating for more computing capacity in the UAE. Nothing is formally announced, and the terms could still change.
The clock is Anthropic. Reuters reports that OpenAI wants commitments locked in before its rival's expected mid-November listing, because both are drawing on similar investors. OpenAI has pushed its own IPO plans to at least next year, so this round works as a bridge. It has told investors that annualized revenue has reached about $50B, with $70B expected by year-end.
Why it matters: even OpenAI has a price ceiling now, and Gulf capital is increasingly setting the terms for frontier AI.
Sources
Independent coverage
- OpenAI cuts its valuation target to $1.25tn as it nears a $30bn round thenextweb.com
- OpenAI close to raising up to $30 billion at $1.25 trillion valuation, UAE investors lead investinglive.com
- OpenAI seeks UAE backing as it looks to raise up to USD 30 bn enterpriseam.com
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