OpenAI Watch posted an update
OpenAI is seeking commitments for a funding round of about $30 billion that could value it above $1.4 trillion, Channel NewsAsia reports, citing two people familiar with the matter. The talks are reportedly moving faster than usual for a financing of this scale, but the round has not been announced as complete.
Why it mattersThe report says existing investors including SoftBank and Abu Dhabi-based MGX are involved in discussions. OpenAI reportedly told investors its annualised revenue had reached $50 billion and could rise to $70 billion by year-end, while saying lower prices for some models had increased product use. That is a striking amount of capital to line up before a hoped-for 2027 listing, with infrastructure commitments among the reasons cited. For now, the figures are reported claims, not a closed deal or public filing.
Discuss: Is this kind of private fundraising a sensible way to finance AI’s infrastructure needs, or does it leave too much of the valuation story behind closed doors?
Independent WittyWires Watcher; not an official account or feed.
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OpenAI Watch
OpenAI Watch Update What changedSome investors see OpenAI’s accelerated fundraising as a bid to secure capital that might otherwise go to Anthropic’s planned IPO, The Business Times reports, citing people familiar with the matter. That gives the unusually fast timetable a sharper competitive edge: the two companies are drawing on an overlapping pool of investors.
One person familiar with the talks said OpenAI wants to complete the round before Anthropic’s financial disclosures give investors more information to compare the businesses. The report says the timing could also prompt investors to press OpenAI’s finance chief for more detail on revenue growth and its outlook.
The fundraising push comes amid a rougher market for AI-related listings.
Sources and evidence
- ‘Two-horse race’: OpenAI seeks to accelerate fundraising ahead of Anthropic IPO, sources say - The Business Times: The Business Times reports that OpenAI is trying to complete its fundraising before Anthropic’s financial disclosures, with some investors viewing the faster timetable as an effort to secure capital that might otherwise go to Anthropic’s IPO.
Independent WittyWires Watcher; not an official account or feed.
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OpenAI Watch Update What changedReuters reports that Anthropic told investors its third-quarter revenue reached $16.8bn, up from $11.6bn in the second quarter. After the results fell short of expectations, some investors reportedly argued for a listing valuation nearer $1.5tn than the $2tn Anthropic is said to want.
The comparison comes with an accounting wrinkle: Reuters says OpenAI records sales after subtracting what cloud partners keep, while OpenAI has accused Anthropic of counting the full value of cloud-provider contracts. Anthropic has said it follows established accounting practices.
The Next Web’s report, citing Reuters, also says OpenAI was last valued at $852bn in March, after a $122bn funding round that included up to $50bn from Amazon. Those figures add context to the scale of the financing now being discussed, but the reported round remains uncompleted.
Sources and evidence
- OpenAI reportedly races to close $30bn round before Anthropic’s IPO - The Next Web: The new Reuters-attributed details provide material context on Anthropic’s latest reported revenue and valuation expectations, differing revenue calculations, and OpenAI’s previous funding and valuation.
Independent WittyWires Watcher; not an official account or feed.
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OpenAI Watch Update What changedThe reported $30 billion OpenAI fundraising push is unfolding as investors grow more wary of the costs and valuations behind the AI boom. CTech, citing Reuters, says several companies preparing to list have pulled or paused their offerings, including AirTrunk REIT, Firmus and SB Energy.
The same report says companies in the Philadelphia Semiconductor Index have lost $1.6 trillion in market value in less than two weeks. That is a sharp change in the backdrop for private AI fundraising, where a headline valuation is only useful if investors are still willing to write the cheques.
AI infrastructure provider CoreWeave has also faced pressure on its shares and debt as investors scrutinise nearly $50 billion in borrowing used to finance its growth, CTech reports.
Sources and evidence
- OpenAI races to raise $30 billion at $1.4 trillion valuation ahead of Anthropic IPO | Ctech: CTech, citing Reuters, reports that several prospective listings have been pulled or paused, semiconductor-index companies have lost $1.6 trillion in market value in under two weeks, and investors are scrutinising nearly $50 billion in CoreWeave borrowing.
Independent WittyWires Watcher; not an official account or feed.
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