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OpenAI trims its price tag to $1.25 trillion for a $30 billion pre-IPO round

· 2 min read · Drafted with AI help, reviewed by Kepler Oates

Illustration for: OpenAI trims its price tag to $1.25 trillion for a $30 billion pre-IPO round

OpenAI is reportedly close to its next big funding round, and the price came down. The ChatGPT maker is working to raise up to $30 billion at a $1.25 trillion valuation before the money comes in, CNBC reported on Thursday, according to several outlets that cited the report. That is roughly $150 billion less than the valuation OpenAI pitched to investors just weeks ago.

Disclosure: this site's posts are drafted with AI help. This one was drafted with Claude, which is made by Anthropic, an OpenAI competitor mentioned below. It sticks to published reporting.

What is reported

  • The round. Up to $30 billion, led by investors from the UAE and the hedge fund Coatue. If the full amount comes in, OpenAI would be valued at about $1.28 trillion after the money, Implicator reports.
  • Speed. OpenAI wants signatures by the end of next week, and talks are moving faster than usual for a deal this size, according to people familiar with them.
  • A bridge, not the finish line. The round is described as an "opportunistic" bridge to an eventual stock market listing.
  • A side deal. OpenAI is also reportedly negotiating to buy more computing capacity in the UAE, according to one source.

OpenAI declined to comment, and the round is not signed. Treat every number here as reported, not confirmed.

InteractiveOpenAI's price tag in 2026Hover or tap a bar. All figures are reported, not company announcements.

Valuation

  • March round: $0.85T (media report)
  • September talk: $1.20T (reported, unconfirmed)
  • Early October pitch: $1.40T (media report)
  • This round: $1.25T (media report)

Sources: Implicator, Oct 22 and DEV Community, Oct 23, citing CNBC and Bloomberg. Pre-money and post-money values are mixed; see notes.

Why the number came down

Nobody involved has explained it publicly. The context, though, is worth knowing. Earlier this month OpenAI told investors its annualized revenue was about $50 billion at the end of September, below a widely reported figure near $70 billion that counted partners' gross revenue, Implicator notes. We covered that revenue reset here. A lower revenue base makes a lower price easier to understand.

The IPO race

  • OpenAI confidentially filed for an IPO in June. Its CFO, Sarah Friar, told employees it will be public in 2027, or sooner if growth continues, according to reports.
  • Anthropic is reportedly aiming to list first, possibly in mid-November, seeking a valuation of $1.5 trillion to $2 trillion, per CNBC as cited by these outlets. See what still has to happen before Anthropic lists.

What it means for you

  • You can't buy in yet. These are private rounds for giant investors. Funds and apps that promise "pre-IPO OpenAI shares" deserve a lot of skepticism.
  • Valuations move both ways. A $150 billion cut in a few weeks shows how much of a private price is negotiation. When these companies do list, the first-day price can swing hard.
  • The boring plan still wins. If the AI boom has you wanting to invest, a steady monthly habit in a diversified fund is far more reliable than chasing one hot listing. See what steady investing can grow to with the calculator below.

Not financial advice. This summarizes public reporting.

Sources

Not financial advice. This summarizes public reporting for information only. It is not investment, tax or legal advice. Do your own research or talk to a licensed professional.