OpenAI is negotiating a bridge funding round of up to $30 billion led by Coatue Management and UAE investors, adjusting its target valuation down from $1.4 trillion to $1.25 trillion following pushback from private wealth clients and tech market headwinds. The raise aims to sustain operations as OpenAI pushes back its planned public debut to 2027, while also negotiating compute capacity access in the UAE and tracking rival Anthropic's impending IPO.
Terms of the bridge funding round
- ▪OpenAI Group PBC is negotiating a bridge funding round to raise up to $30 billion in private capital
- ▪OpenAI gave prospective investors an October 30, 2026 deadline to commit capital to its $30 billion funding round
- ▪U.S. venture capital firm Coatue Management and United Arab Emirates investment funds are negotiating to lead OpenAI's proposed $30 billion funding round
Valuation pitch and investor resistance
- ▪OpenAI reduced its valuation target for its $30 billion funding round to $1.25 trillion after encountering investor pushback
- ▪Concerns over debt-financed artificial intelligence infrastructure spending and a sell-off in U.S. technology stocks contributed to investor resistance against OpenAI's $1.4 trillion valuation pitch
- ▪Morgan Stanley and Dragoneer initially pitched OpenAI to private wealth clients at a $1.4 trillion pre-money valuation
OpenAI's valuation growth
- ▪A valuation of $1.25 trillion would make OpenAI the most valuable private company in history
- ▪A valuation of $1.25 trillion would represent a jump of nearly 50 percent from OpenAI's previous valuation of $852 billion set in its March 2026 funding round
OpenAI initial public offering plans
- ▪OpenAI filed a confidential initial public offering prospectus with the U.S. Securities and Exchange Commission in June 2026
- ▪OpenAI Chief Financial Officer Sarah Friar informed employees in August 2026 that OpenAI targets becoming a public company in 2027
- ▪OpenAI Chief Executive Officer Sam Altman stated in September 2026 that attempting an initial public offering in 2026 would be ill-advised
- ▪OpenAI is positioning its $30 billion raise as a bridge round to fund operations while finalizing plans for an initial public offering
Middle East computing capacity deals
- ▪OpenAI is negotiating a commercial deal with United Arab Emirates investors to secure additional Middle East computing capacity
- ▪A proposed United Arab Emirates deal grants OpenAI right of first refusal on new computing power developed by regional partners
Previous OpenAI funding rounds
- ▪OpenAI raised $40 billion in a funding round in March 2025
- ▪OpenAI previously raised $122 billion from investors including Amazon, SoftBank, and Nvidia in March 2026 at an $852 billion post-money valuation
Anthropic fundraising and valuation
- ▪OpenAI rival Anthropic PBC confidentially filed an initial public offering prospectus in June 2026 and is targeting a valuation between $1.5 trillion and $2.5 trillion
- ▪Anthropic raised $65 billion at a $965 billion valuation in May 2026
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