OpenAI is nearing the completion of a massive private funding round rather than accelerating its initial public offering (IPO) plans. According to CNBC on October 22, 2026, the leading AI research lab is in talks to raise up to $30 billion at a pre-money valuation of up to $1.25 trillion. The funding talks are currently led by venture capital firm Coatue alongside financial institutions in the United Arab Emirates (UAE).
A Record-Breaking Private Funding Round
If it achieves a valuation surpassing $1 trillion in this round, OpenAI will officially shatter all records to become the most valuable private company in financial market history. This move follows leaked reports in late September 2026 regarding talks to raise $30 billion at a $1.4 trillion valuation. Both media outlets confirmed that detailed terms remain under active negotiation and could change before a formal agreement is finalized, while an OpenAI representative declined to comment.
This valuation of over $1.2 trillion will set expectations extraordinarily high for OpenAI’s upcoming IPO. In June 2026, the company confidentially filed draft registration documents for an IPO with the U.S. Securities and Exchange Commission. Earlier, a funding round in March 2026 valued the ChatGPT parent company at $852 billion post-money. Despite recent reports of $50 billion in annualized revenue, the costs of training next-generation model clusters and operating massive infrastructure continue to burn through cash flow.
Computing Infrastructure Ties to the Middle East
A notable aspect of the negotiations with the UAE investor consortium extends beyond the cash infusion into the company. According to sources familiar with the matter, the Gulf financing package may come with a strategic partnership to secure additional large-scale compute capacity for OpenAI in local data centers. Gaining access to low-cost electricity and server resources in the Middle East is emerging as a lifeline for AI labs as the U.S. power grid faces mounting strain.
The push to forge alliances with Gulf infrastructure partners also reflects intense competition among frontier labs. Much like rivals seeking to ease server infrastructure pressure through next-generation cloud providers, OpenAI is compelled to lock in supplies of graphics chips and cooling infrastructure early on in preparation for its next model training cycles.
The Valuation Race Ahead of Listing
OpenAI’s massive valuation also exerts direct psychological pressure on the IPO plans of Anthropic, which is widely expected to file its Form S-1 at any time. Recent reports suggest Anthropic is targeting a valuation between $1.5 trillion and $2 trillion for its public debut, having raised $65 billion at a $965 billion valuation in May 2026.
The fact that both AI leaders continue to draw tens of billions of dollars in private capital right before going public suggests that public capital markets may not yet be ready to immediately absorb the sector’s immense appetite for capital. Rather than subjecting itself to the stringent scrutiny of quarterly public earnings reports, OpenAI has opted to remain private a bit longer to fortify its infrastructure and finalize its transition to a for-profit corporate structure.