UAE-led group near $30B OpenAI funding at $1.25T value

This funding round offers publicly traded markets a new indication of how private investors value frontier artificial intelligence following recent swings in AI-related stocks. A valuation that is lower than the approximately $1.4 trillion OpenAI had aimed for might be seen as a mark of greater pricing restraint. Such an interpretation would be relevant for chip producers like Nvidia and for infrastructure companies linked to AI investment. SoftBank, a substantial current backer of OpenAI, is one of the closest listed proxies, and its Tokyo-listed stock could react to any new valuation placed on the stake. The extent of Gulf involvement also demonstrates how heavily the AI buildout relies on state-owned capital, linking the industry more intimately with oil revenues and Middle East geopolitics.

A CNBC report (which may be behind a paywall) shows that investors from the United Arab Emirates are leading the round.

The valuation that has emerged is markedly below the amount OpenAI was aiming for earlier this month. In early October, Bloomberg stated that OpenAI wanted to raise at least $30 billion at a pre-money valuation of around $1.4 trillion. The article said OpenAI was offering that valuation as a set price to potential investors, despite not having selected a lead investor. That strategy is uncommon for a private placement, where investors typically suggest and haggle over conditions.

Gulf capital has been key to the negotiations from the beginning. According to Bloomberg, multiple UAE funds, among them Abu Dhabi's MGX, were working on a syndicate that might provide as much as $10 billion, with BlackRock also involved in talks. MGX has participated in previous financing rounds for OpenAI and Anthropic.

Even at $1.25 trillion, the figure still represents a significant increase from OpenAI's previous fundraising. In March, the company raised about $120 billion at roughly $850 billion, meaning the new pre-money valuation is almost 50% above that from seven months earlier. The addition of $30 billion in fresh capital would bring the post-money valuation to about $1.28 trillion.

The timing is thought to be influential. Reuters reported this week that OpenAI is hurrying to lock in commitments ahead of Anthropic's anticipated stock market listing in mid-November, because both companies tap the same investor base. According to Reuters, some investors view OpenAI's effort as a bid to secure capital that might otherwise be directed toward Anthropic's offering. SoftBank, MGX, and other current supporters were in talks to join. OpenAI has postponed its own IPO plans until at least next year.

OpenAI has been presenting investors with revenue data to make its case. According to Reuters, the company told investors that annualized revenue hit roughly $50 billion after the introduction of GPT-6 Astra, and it estimates it will reach $70 billion by year-end. OpenAI has also reduced prices on its lower-tier models, a step it says boosted usage.

As of the most recent reports, the agreement had not been officially announced, and the conditions could still shift. After the round concludes, the main issues will be whether the reduced valuation shows investors pushing back against pricing or a strategic exchange of valuation for swiftness and guarantee, and to what extent Gulf capital will influence the next chapter of AI fundraising.