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OpenAI pursues $30B bridge round as IPO timeline stretches into 2027

The AI company is in advanced negotiations with UAE-backed investors for a $30 billion funding round that would value it at $1.25 trillion, positioning the capital as a stopgap before a delayed public offering.

·2 min read
OpenAI dismisses three safety researchers accused of sharing confidential material
OpenAI dismisses three safety researchers accused of sharing confidential material

OpenAI Group PBC continues to pursue private capital even as it prepares for an eventual public debut. The company is in talks with investors from the United Arab Emirates to secure an additional $30 billion, a move that would push its valuation to $1.25 trillion and establish it as the most valuable private company ever.

According to CNBC, the UAE investors are leading the round, with U.S. venture capital firm Coatue expected to join. OpenAI is framing the investment as a "bridge" to fund ongoing business operations while the company works toward an initial public offering. The company aims to finalize the deal by the end of the week, though the exact investment size remains uncertain.

The funding discussions began last month when UAE investors first approached OpenAI about a major new round, as Bloomberg initially reported. Negotiations have since progressed substantially, moving toward what appears to be a near-term conclusion.

This round is considerably smaller than OpenAI's previous major capital raise in March, when the company brought in $122 billion from backers including Amazon.com Inc., SoftBank Group Corp. and Nvidia Corp., valuing the company at $852 billion post-money. That funding was expected to sustain operations through an IPO, and OpenAI filed a confidential prospectus with the Securities and Exchange Commission in June to prepare.

OpenAI's public market timeline has shifted significantly. In August, Chief Financial Officer Sarah Friar told staff that OpenAI "will be a public company in 2027." Weeks later, Chief Executive Sam Altman suggested the company should not rush, stating that going public this year would be "ill-advised."

The delayed IPO timeline has created an opening for rival Anthropic PBC, maker of Claude, to potentially reach public markets first. Anthropic is pursuing its own major IPO and is targeting a valuation between $1.5 trillion and $2.5 trillion, with observers suggesting the company could go public by Thanksgiving.

Beyond the investment itself, OpenAI is also negotiating a separate commercial arrangement with the UAE investors that would expand its access to computing infrastructure in the Middle East.

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