OpenAI lowers its valuation target and seeks to raise up to $30 billion

OpenAI is closing in on a new OpenAI funding round of up to $30 billion, but the valuation target attached to that round has come down. The company first pitched investors at a $1.4 trillion valuation, according to internal documents obtained by the Financial Times, and that target later fell to $1.25 trillion, as reported by CNBC. The change matters because the round is not just another private-market check-in: it is being positioned as a bridge ahead of a potential IPO, with a confidential IPO prospectus already filed with the SEC in June.

Background: A $1.4 trillion pitch meets weaker demand

The softer valuation target reflects a change in investor behavior. The Financial Times said demand for this round was weaker than in previous fundraises, and some backers experienced what it described as “indigestion” after heavy investments in earlier rounds. OpenAI is still attracting very large checks, but the market around it has become more selective. That matters for a company seeking up to $30 billion, because the terms agreed now will shape its capital position before public investors set a market price.

Development: A bridge round with United Arab Emirates and Coatue

United Arab Emirates investors and the investment firm Coatue are leading the $30 billion round. Alongside the funding process, OpenAI is also negotiating a commercial deal to secure additional compute capacity through the United Arab Emirates, CNBC reported. That creates a clear bridge structure: money and compute access are being arranged in parallel, while the company keeps a public-market path open.

The IPO timeline has been visible in the company’s own actions and statements. OpenAI confidentially filed an IPO prospectus with the SEC in June. CFO Sarah Friar told employees in August that OpenAI would be a publicly traded company by 2027. CEO Sam Altman said in September, however, that the timing was unfavorable for going public, and he had already communicated that internally back in June. The sequence shows a company preparing for a listing while also warning that the moment may not be right.

Latest progress: Anthropic’s target frames OpenAI’s ask

Competitor Anthropic is also preparing an IPO and is targeting a valuation between $1.5 trillion and $2 trillion. That comparison puts OpenAI’s $1.25 trillion ask in context: two high-profile companies are preparing public-market paths with valuation targets in the trillion-dollar range. For readers, the practical signal is not that OpenAI is simply raising more money. It is that private financing, public-market timing, and compute negotiations are moving together.

Current stage: A bridge under a public-market clock

OpenAI now sits at the bridge stage. It has lowered the valuation target from $1.4 trillion to $1.25 trillion, is pursuing up to $30 billion with United Arab Emirates and Coatue leadership, has already filed confidentially with the SEC, and has public signals pointing both toward a possible 2027 listing and caution about timing. The next milestone is whether the $30 billion round closes on the revised terms and whether the IPO prospectus moves from a confidential filing to a public process.

Meta Description: OpenAI is seeking up to $30 billion in a funding round after cutting its valuation target from $1.4 trillion to $1.25 trillion as it prepares for a possible IPO.

Tags: OpenAI, funding round, IPO, SEC, Anthropic

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