The round gives listed markets a fresh read on how private investors are pricing frontier AI after recent volatility in AI-linked shares. A valuation below the roughly $1.4 trillion OpenAI had sought could be read as a sign of greater price discipline. That reading would matter for chipmakers such as Nvidia and for infrastructure names tied to AI capital spending. SoftBank, a major existing OpenAI investor, is among the most direct listed proxies, and its Tokyo-traded shares may respond to any new mark on the stake. The size of Gulf participation also shows how much of the AI buildout depends on sovereign capital, which ties the sector more closely to oil revenues and Middle East geopolitics.
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CNBC (may be gated) report. Investors from the United Arab Emirates are leading the round.
The reported valuation is notably lower than the figure OpenAI had been seeking earlier this month. Bloomberg reported in early October that the company was looking to raise at least $30 billion at a pre-money valuation of about $1.4 trillion. According to that report, OpenAI was presenting the valuation to prospective investors as a fixed price, even though it had not yet chosen a lead investor. That approach is unusual for a private round, where investors would normally propose and negotiate terms.
Gulf money has been central to the talks from the start. Bloomberg reported that several UAE funds, including Abu Dhabi-based MGX, were discussing forming a syndicate that could contribute up to $10 billion in total, with BlackRock also in discussions to take part. MGX has backed earlier funding rounds for both OpenAI and Anthropic.
Even at $1.25 trillion, the price would mark a sharp step up from OpenAI’s last raise. The company secured about $120 billion in March at a valuation of about $850 billion, so the new pre-money figure would be nearly 50% higher than seven months ago. Adding $30 billion of new capital would put the post-money valuation at around $1.28 trillion.
Timing appears to be a factor. Reuters reported this week that OpenAI is rushing to secure commitments before Anthropic’s expected stock market listing in mid-November, since both companies draw on a similar pool of investors. Some investors see OpenAI’s push as an attempt to lock in money that might otherwise go to the Anthropic offering, according to the Reuters report. SoftBank, MGX and other existing backers were negotiating to take part. OpenAI has itself pushed back plans for an initial public offering until at least next year.
The company has been making its case to investors with revenue figures. It has told investors that annualised revenue reached about $50 billion following the launch of its GPT-6 Astra model, and that it expects to reach $70 billion by the end of the year, Reuters reported. OpenAI has also cut prices on its cheaper models, a move it says has increased usage.
The deal had not been formally announced as of the latest reports, and the terms could still change. Once the round closes, the key questions will be whether the lower valuation reflects investors pushing back on price or a deliberate trade of valuation for speed and certainty, and how much Gulf money will shape the next phase of the AI funding race.
This article was written by Eamonn Sheridan at investinglive.com.