OpenAI is close to finalizing a funding round of up to $30 billion that would value the company at $1.25 trillion before the new money is counted, according to people familiar with the deal. The financing is being led by investors from the United Arab Emirates together with Coatue, a U.S. investment firm, and is being positioned as a bridge ahead of a potential initial public offering in 2027. The valuation is down from the $1.4 trillion figure previously reported, as investors grow more cautious about the cost of building artificial intelligence infrastructure. CNBC reported the news on Thursday, and the people familiar with the talks asked not to be named because the details are confidential. If completed at the top of that range, the round would rank among the largest private fundraisings on record.

OPENAI NEARS $30 BILLION FUNDING ROUND AT $1.25 TRILLION VALUATION: CNBC

UAE investors and Coatue are leading the financing, which is being positioned as a bridge ahead of a potential IPO in 2027. OpenAI is targeting investor signatures by the end of next week, although the… pic.twitter.com/iz9KESIqBC

— Wall St Engine (@wallstengine) October 22, 2026

Who Is Leading the Round

Investors from the United Arab Emirates are heading up the financing, with Coatue also taking part. The round is being described as an "opportunistic" bridge ahead of a possible IPO, and it would give the San Francisco-based company more capital before it goes public. Bridge rounds are interim financings designed to carry a company to a larger milestone — in this case, a potential public listing — rather than to fund operations over several years.

OpenAI began talks on a new round after investors approached the company with proposals in September. On Thursday, it told investors it hopes to secure signatures by the end of next week. The final size of the round has not been set, and the $30 billion figure represents the upper end of what OpenAI is seeking.

A Lower Valuation Than Reported Before

The Financial Times reported that OpenAI cut its valuation target by $150 billion, lowering its ask from the $1.4 trillion figure that had been reported earlier. Even with the reduction, the new number remains above OpenAI's last reported valuation of $852 billion in March 2026 — roughly 47% above that figure — though according to the report, some investors were hesitant to buy in at the higher price.

Investor demand has reportedly been weaker than in past rounds. The report said investors are growing more cautious about the cost of building AI infrastructure, with some worried that heavy spending on data centers and computing power may not pay off. It also said some may be feeling funding fatigue after putting large sums into AI companies in recent years.

The valuation cut comes as U.S. tech stocks face a sell-off. Meta Platforms fell about 7% on Wednesday after its third-quarter results, beating revenue estimates but raising concerns about higher capital spending. The company lifted the low end of its spending forecast from $130 billion to $135 billion, while the upper end stayed at $145 billion.

Computing Deal and IPO Plans

OpenAI is also negotiating a commercial deal to secure more computing capacity from the UAE, according to one person familiar with the talks. In February, the company told investors it is targeting about $600 billion in total compute spending by 2030. Even at its $30 billion upper end, the current round would cover only a fraction of that multi-year target.

OpenAI confidentially filed its prospectus with the Securities and Exchange Commission in June and has not said when it plans to debut. Confidential filings allow companies to start the SEC's review without publicly disclosing financial details until closer to a listing. CFO Sarah Friar told employees in August that OpenAI "will be a public company in 2027." The following month, CEO Sam Altman said "right now would be an ill-advised moment to go public." What remains open is the final size of the round and whether OpenAI secures the signatures it has targeted for the end of next week.

Rival Anthropic also filed confidentially in June and is meeting with prospective investors. It is reportedly seeking a valuation between $1.5 trillion and $2 trillion in an offering. In May, Anthropic closed a $65 billion funding round at a $965 billion valuation. With both companies filing in the same month, the two closely watched AI developers are now on similar tracks toward potential public debuts.