OpenAI in Talks for $30 Billion Round at $1.4 Trillion Valuation

OpenAI is negotiating a new funding round of around $30 billion, at a pre-money valuation of nearly $1.4 trillion, according to The Next Web citing Bloomberg. The round was pitched to investors at a fixed price, with no lead investor decided yet.

Abu Dhabi-based Emirati firm MGX is discussing forming a syndicate of UAE funds that would collectively contribute up to $10 billion to the round, reflecting the continued Gulf presence in funding major AI companies. This represents a shift in the sector's funding landscape, as Gulf funds have become key players in the largest global AI rounds.

BlackRock is in talks to join the round, alongside other names floated in negotiations such as Thrive Capital, Andreessen Horowitz, and the University of California endowment. OpenAI and BlackRock declined to comment on the news.

The report noted that the terms of the round remain subject to change and that negotiations are not yet finalized. If closed at this size, it would be one of the largest private funding rounds in history, reflecting the scale of global competition to fund advanced AI models. Markets are expected to follow this closely, as it provides an indicator of the cost of capital in the sector in the coming months.

What Do These Terms Mean?

Pre-money Valuation: The value of the company before the new funding round is injected, excluding the amount to be raised.

Funding Round: A stage in which a business raises funds from investors in exchange for an equity stake.

Sovereign Wealth Fund: An investment fund owned by a state that invests its financial surpluses, such as MGX in Abu Dhabi.

Lead Investor: The investor who leads the round, sets its price, and brings together the other participants around it.