The Pulse
OpenAI Seeks $30 Billion Before Anthropic’s IPO
OpenAI is seeking about $30 billion in a funding round that could value the company above $1.4 trillion, as it tries to secure investor commitments before Anthropic’s expected public debut. The negotiations come amid investor scrutiny of AI
AI.info Team · Written with AI · fact-checked ·
OpenAI is seeking about $30 billion from investors in a round that could value the company above $1.4 trillion, according to a Reuters report published October 19. The company is trying to secure investor commitments before rival Anthropic’s expected public debut in mid-November, putting two major AI companies in competition for capital on a compressed timetable. The fundraising has not been completed, and the reported valuation is a possible outcome, not a confirmed price.
SoftBank and MGX are in talks
Existing OpenAI backers SoftBank Group and Abu Dhabi-based MGX are among those discussing participation, one person familiar with the matter told Reuters. OpenAI also met with long-only investment funds and sovereign wealth funds last week, while Anthropic held its own investor day. People familiar with the process said OpenAI expects the round to move faster than a funding effort of this size typically would.
The timing matters because both companies are seeking very large valuations from investors who may have to assess their private funding rounds and public-market prospects close together. Some investors see OpenAI’s push as a bid to secure money that might otherwise go toward Anthropic’s IPO. OpenAI and SoftBank declined to comment; Anthropic and MGX did not immediately respond to Reuters’ requests.
Revenue claims will face comparison
OpenAI is telling investors that its annualized revenue reached $50 billion and could rise to $70 billion by year-end, according to one person familiar with the company’s pitch. The person linked the reported growth to the launch of the GPT-6 Astra model. OpenAI has also told investors that lower prices for cheaper models have boosted usage and that it could cut prices further.
Anthropic, by comparison, told investors its revenue rose to $16.8 billion in the third quarter from $11.6 billion in the second. Reuters has previously reported that Anthropic’s annualized revenue reached roughly $65 billion by July. The report says slowing month-to-month growth has raised concerns among investors about Anthropic’s valuation, adding pressure to explain how the companies’ revenue figures compare.
The comparison is complicated by a dispute over accounting. OpenAI records revenue after subtracting partner shares upfront and has accused Anthropic of counting the gross value of contracts sold through third-party cloud providers. Anthropic has told Reuters it follows established accounting practices; the report does not resolve the disagreement.
“OpenAI could want to set its own valuation and not have to worry about a comp (comparison),” said Edward Best, co-chair of capital markets at Willkie Farr & Gallagher. “It’s really a two-horse race in terms of being public.” Best was not working on the deal and commented hypothetically.
A $1.4 trillion target meets a jittery market
OpenAI was valued at $852 billion in March after a $122 billion funding round, Reuters reported. The new round would come as investors weigh the expense of AI infrastructure alongside uncertainty in technology stocks and public listings. OpenAI also needs capital for infrastructure commitments and to strengthen its balance sheet if market conditions delay its planned 2027 listing, according to people familiar with the company.
Market caution is already affecting other companies’ plans. Reuters reported that several businesses preparing to go public have chosen to wait until after Anthropic’s expected listing, while some late-stage companies are timing private fundraising to avoid the same window. The immediate test for OpenAI is whether investors will commit to the reported round at the valuation being discussed before Anthropic’s financial disclosures give them more material for comparison.