Business · Companies · 9 mins ago
OpenAI nears $1.2 trillion valuation in UAE-Coatue round
OpenAI is nearing a $1.2 trillion valuation in a funding round involving the UAE and investment firm Coatue.
The round’s terms and timing are not stated.
The company is also negotiating a separate deal with the UAE for more computing capacity.
That deal is separate from the round.
The two developments involve both investment in OpenAI and access to computing resources.
The talks could give OpenAI more computing capacity, but no agreement has been announced.
The negotiations are ongoing, and no further details are given.
OpenAI is negotiating a funding round of up to $30 billion at a $1.25 trillion pre-money valuation, down from an earlier target of $1.4 trillion.
Coatue Management and investors from the United Arab Emirates are among those involved in talks about the round.
The terms are still being negotiated and could change.
OpenAI is also negotiating a separate commercial deal for more computing capacity from the UAE.
The funding talks come amid investor scrutiny of heavy AI spending and its potential returns.
OpenAI has pushed back its IPO plans until next year, while it has said it expects to be a public company in 2027.
- Who
- OpenAI is raising the funds. Coatue Management and UAE investors are among those in discussions.
- What
- OpenAI is negotiating a funding round of up to $30 billion at a $1.25 trillion pre-money valuation.
- When
- The reports were published on October 22 and 23, 2026. Terms were still being negotiated.
- Where
- The round’s location is not stated. UAE investors are involved, and OpenAI is negotiating a separate computing-capacity deal with the UAE.
- Why
- The sources say the talks come amid concerns about the scale and sustainability of AI investment and its potential returns.
This story does not have two clearly opposing sides.
OpenAI raised $122 billion at an $852 billion valuation.
OpenAI confidentially filed paperwork for an IPO.
Chief financial officer Sarah Friar told employees that the company will be a public company in 2027.
Chief executive Sam Altman said going public at that point would be an ill-advised moment.
Reports said OpenAI was negotiating a funding round of up to $30 billion at a $1.25 trillion pre-money valuation.
- Proposed funding round
- Up to $30 billion
- Proposed pre-money valuation
- $1.25 trillion
- Earlier valuation target
- $1.4 trillion
- Potential co-lead
- Coatue Management
- UAE involvement
- Investors from the UAE and a separate computing-capacity deal
- Most recent completed raise
- $122 billion in March at an $852 billion valuation
4 sources
What people are saying
will be a public company in 2027
an ill-advised moment