OpenAI nears completion of a new funding round with UAE investors

OpenAI is nearing completion of a new funding round of up to $30 billion, but its valuation target has been lowered. According to internal documents obtained by the Financial Times, the company initially quoted investors a valuation of $1.4 trillion, which was subsequently reduced to $1.25 trillion; CNBC also reported this adjustment. The FT said demand for this round was weaker than in previous rounds, with some investors experiencing "indigestion" after large earlier commitments; UAE investors and investment firm Coatue led the round, which is positioned as bridge financing ahead of a potential IPO. CNBC said OpenAI is also negotiating a commercial agreement to obtain additional compute through the UAE. OpenAI confidentially submitted an IPO prospectus to the SEC in June; CFO Sarah Friar told employees in August that the company would become a public company by 2027, while CEO Sam Altman said in September that current market conditions were unfavorable for going public.