OpenAI is closing in on a funding round that could value the artificial intelligence giant at more than $1 trillion ahead of a potential initial public offering.
The San Francisco-based AI company is raising up to $30 billion at a $1.25 trillion valuation, according to people familiar with the deal, who asked not to be named because the details were confidential. That valuation does not include new capital raised.
Investors from the United Arab Emirates are leading the round alongside Coatue, according to the people. The financing is being positioned as an "opportunistic" bridge ahead of a potential IPO.
OpenAI kickstarted discussions for a new funding round after investors approached the company with proposals in September, as CNBC previously reported. OpenAI told investors on Thursday that it is aiming to secure signatures by the end of next week, but the final size of the round is still being determined, the people said.
Alongside the new investment, OpenAI is negotiating a commercial deal that would secure more computing capacity from the UAE, according to one person. OpenAI told investors in February that it's targeting roughly $600 billion in total compute spend by 2030.