OpenAI nears a raise of up to $30 billion at a $1.25 trillion valuation after cutting its target
OpenAI lowered its asking price after some investors resisted a $1.4 trillion valuation, and UAE investors are leading the round.
OpenAI is close to finalising a funding round of up to $30 billion at a $1.25 trillion pre-money valuation, according to people familiar with the matter2. The round is being led by UAE investors2. The company is closing in on the new round at that valuation1.
The price is lower than the one OpenAI first pitched3. The company cut its valuation target for the round after facing resistance from some investors to a $1.4 trillion price tag3. Even after the cut, the $1.25 trillion target is still about a 50% jump from where the company’s valuation sits now, according to one commentary on the move5.
OpenAI is working on the new raise of about $30 billion ahead of a planned initial public offering4.
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Why it matters to investors
The round is a direct test of how much private investors will pay for the largest AI developers. Some investors pushed back at $1.4 trillion, and OpenAI responded by lowering its target to $1.25 trillion2,3.
The round also sets up a comparison with Anthropic. Rumours suggest Anthropic’s public S-1 filing could come any day, and the latest reports have Anthropic seeking a valuation of $1.5 trillion to $2 trillion4. That range sits above the $1.25 trillion OpenAI has now settled on for its private round2,4.
The source of the money matters as well. UAE investors are leading the round, according to the people familiar with the deal2. The round of up to $30 billion is being raised ahead of OpenAI’s planned IPO, which places Gulf investors among the company’s last private backers before a listing2,4.
What to watch
The first question is whether the round closes at the $1.25 trillion pre-money figure or moves again, since the target has already been cut once2,3. The deal is described as close to final rather than signed, and the details so far come from people familiar with the talks2.
The second marker is the timing of OpenAI’s own IPO, because the raise is being assembled ahead of it4. A public S-1 filing from Anthropic, which rumours suggest could come at any time, would give investors a public valuation benchmark against which to judge OpenAI’s private price4.
The difference between the $1.4 trillion first pitched and the $1.25 trillion now on the table is the clearest measure in the reports of where investor resistance began2,3.
Sources
- OpenAI closing in on new funding round at $1.25 trillion valuation - CNBC, cnbc.com (2026-10-23)
- OpenAI nears funding round at $1.25T valuation led by UAE investors - CNBC, cnbc.com (2026-10-22)
- OpenAI trims valuation target to $1.25tn after pitching higher price - Financial Times, ft.com (2026-10-22)
- OpenAI working on new $30B raise at $1.25T valuation ahead of IPO - TechCrunch, techcrunch.com (2026-10-22)
- OpenAI trims valuation target to $1.25tn after pitching higher price - X, x.com (2026-10-22)
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