OpenAI is moving to secure roughly $30 billion in new investor commitments before rival Anthropic’s expected public market debut in mid-November. According to Reuters, the fast-moving funding round could push the valuation of the ChatGPT maker above $1.4 trillion, as both artificial intelligence labs compete for the same pool of institutional capital.
The Bottom Line
- OpenAI is racing to close an approximate $30 billion funding round ahead of Anthropic’s mid-November IPO to capture investor capital and establish its own valuation framework.
- The company reported reaching $50 billion in annualized revenue following the rollout of its GPT-6 Astra model, with expectations to hit $70 billion by the end of the year.
- Broader market turbulence, rising bond yields, and a sharp pullback in technology stocks have disrupted autumn listing plans across the sector, adding urgency to private fundraising efforts.
Accelerated Timetable to Head Off Public Comparisons
The compressed fundraising schedule reflects an explicit effort by OpenAI to get ahead of Anthropic’s public market arrival, Reuters reported. By securing capital now, OpenAI aims to lock in long-only funds and sovereign wealth funds that might otherwise allocate larger portions of their resources to Anthropic’s stock offering. Meetings with institutional investors took place last week just as Anthropic hosted its own investor day.
Existing backers including SoftBank Group (TYO: 9984) and Abu Dhabi-based MGX are currently in talks to participate in the financing round. OpenAI was last valued at $852 billion in March following a $122 billion funding round that included a commitment from Amazon.com (NASDAQ: AMZN) to invest up to $50 billion.
OpenAI and Anthropic Report Diverging Revenue Metrics
To justify the $1.4 trillion valuation target, OpenAI has been pitching investors on rapid growth fueled by the launch of its GPT-6 Astra model. The company stated that its annualized revenue reached $50 billion and is projected to climb to $70 billion by year-end. OpenAI reported that recent price cuts on its cheaper models have successfully driven higher usage volume.
OPENAI IS REPORTEDLY RACING TO RAISE MONEY BEFORE ANTHROPIC'S IPOThe round could value the ChatGPT maker at over $1.4 trillionOpenAI is trying to lock in investor commitments for a round of about $30 billion before Anthropic's expected public debut in mid-November, per… pic.twitter.com/2pHmAczcM4
Meanwhile, Anthropic reported annualized revenue of roughly $65 billion by July, with third-quarter revenue reaching $16.8 billion—up from $11.6 billion in the second quarter. However, slowing month-to-month growth has introduced questions among investors regarding its target valuation. Some prospective investors have argued for a more modest $1.5 trillion valuation for Anthropic’s debut, down from an initial $2 trillion target, following third-quarter results that fell short of expectations.
| Company | Latest Valuation Target / Last Valuation | Reported Annualized Revenue | Recent Quarterly Revenue |
|---|---|---|---|
| OpenAI | $50 Billion (Projected $70 Billion by Year-End) | Not Disclosed | |
| Anthropic | $1.5 Trillion to $2 Trillion (Desired IPO Range) | Roughly $65 Billion (As of July) | $16.8 Billion (Q3) |
Macroeconomic Headwinds and Infrastructure Pressures
The rush for private capital comes amid a choppy macroeconomic environment. Since September, volatility in oil prices, rising bond yields, and heightened scrutiny over AI safety and infrastructure costs have cooled institutional appetite for technology equities. The pressures have been particularly visible in the neocloud sector; shares and debt tied to cloud provider CoreWeave (NYSE: CRWV) dropped sharply last week as markets examined the nearly $50 billion in borrowings used to fund data center expansions.
OpenAI requires the incoming capital not only to outpace its rival’s market entry but also to fund massive infrastructure commitments and fortify its balance sheet, providing a financial buffer if persistent market jitters delay its own planned public stock debut in 2027.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
