OpenAI’s valuation has been cut to $1.25 trillion pre-money for a new round of up to $30 billion, led by Coatue and UAE investors, according to CNBC. That is $150 billion below the $1.4 trillion OpenAI pitched weeks ago. A full raise would put post-money near $1.28 trillion, about 1.5 times March’s $852 billion mark. The deal is not signed.
Key takeaways
- OpenAI seeks up to $30 billion at $1.25 trillion pre-money, per CNBC sources.
- The price sits $150 billion below the $1.4 trillion floated in late September.
- On roughly $50 billion of annualized revenue, the new price is about 25x sales.
How much is OpenAI raising, and at what valuation?
OpenAI is working to raise up to $30 billion at a $1.25 trillion pre-money valuation, CNBC reported on October 22, citing people familiar with the talks. Coatue and investors from the United Arab Emirates are leading. Terms are still being negotiated and could change, and OpenAI declined to comment.
If the full $30 billion arrives, the post-money OpenAI valuation lands around $1.28 trillion. That would still make it the most valuable private company ever, as TechCrunch noted in its write-up.
The round is described as “opportunistic,” a bridge to a later IPO rather than a substitute for one. According to Implicator’s summary of the reporting, OpenAI wants signatures by the end of next week.
Who is in the round?
Coatue and UAE investors are the named leads. SoftBank and Abu Dhabi’s MGX were reportedly in talks to join as of October 19, per Implicator. None of these commitments is public or confirmed.
There is a second thread. OpenAI is also negotiating a commercial deal to secure more computing capacity from the UAE, according to one person familiar with the talks. Money and compute from the same region would arrive as a package.
Why did the OpenAI valuation fall $150 billion?
Investors balked at the higher price. The Financial Times reported that OpenAI cut its target by $150 billion from the $1.4 trillion it had shown backers, and that some investors were hesitant at that level, according to MoneyCheck’s account of the FT and CNBC reports. Demand is described as weaker than in past rounds.
Three pressures stand out. First, the revenue story got smaller. Second, public markets are punishing heavy AI spending. Third, investors are already deep in AI after a year of record rounds.
The revenue number shrank by $20 billion
In late September, OpenAI’s annualized revenue was widely reported as approaching $70 billion. On October 8, the FT reported that investors had been told the figure was approaching $50 billion, TechCrunch reported, about $20 billion lower.
The gap came from method, not collapse. The higher figure was built by OpenAI’s own investors trying to match Anthropic’s approach, which counts sales its cloud partners make. OpenAI’s net figure does not. We covered the earlier, higher pitch in our September look at the $1.4 trillion round.
Public markets turned on AI capex
The timing did not help. Meta fell about 7% on Wednesday after its third-quarter results, as MoneyCheck reported. Meta beat revenue estimates but raised the low end of its spending forecast from $130 billion to $135 billion, with the top end held at $145 billion.
When the market marks down a profitable company for spending on AI, private buyers of an unprofitable one ask for a better price.
How has OpenAI’s valuation moved in 2026?
OpenAI’s price has swung within a $300 billion band in two months. It raised at $852 billion post-money in March, saw $1.2 trillion floated in September, pitched $1.4 trillion in late September and early October, and now sits at $1.25 trillion pre-money. The trend since March is still sharply up.
| Date (2026) | Event | Valuation | Source |
|---|---|---|---|
| March | $122B round closes (Amazon, SoftBank, Nvidia) | $852B post-money | Company / TechCrunch |
| August | ~$7B employee secondary sale | Not reported | Implicator |
| September | Investors float new price | $1.2T | Implicator |
| Late Sept. / early Oct. | $30B round pitched | $1.4T pre-money | Bloomberg, via TechCrunch |
| October 22 | Up to $30B, Coatue and UAE lead | $1.25T pre-money (~$1.28T post) | CNBC, via TechCrunch |
One caution on the comparison. March’s $852 billion is post-money, while $1.25 trillion is pre-money. Compared like for like, the roughly $1.28 trillion post-money figure is about 1.5 times March’s mark.
Is $1.25 trillion actually cheaper?
Not on revenue. The headline price fell, but the revenue base fell further. At $1.4 trillion on a reported $70 billion run rate, buyers were paying about 20x sales. At $1.25 trillion on roughly $50 billion, they pay about 25x. The “cut” makes the deal more expensive per dollar of revenue.
Bulls have an answer. The investor presentation cited 77% run-rate growth in the third quarter and 107% for enterprise, according to Implicator. One person said OpenAI expects about $70 billion in annualized revenue by year-end. If that lands, the multiple drops toward 18x.
The skeptic’s reading is simpler. A company that let a $70 billion figure circulate, then corrected it to $50 billion, is now asking investors to underwrite a $70 billion forecast. That is a lot of trust to extend on unaudited, company-reported numbers.
The compute bill dwarfs the raise
OpenAI told investors in February that it targets about $600 billion in total compute spending by 2030, MoneyCheck reported. A full $30 billion round covers about 5% of that. The round buys time, not independence from debt, partners and eventually public markets.
How does OpenAI compare with Anthropic’s IPO pricing?
Anthropic is closer to the public market and aiming higher. CNBC reports Anthropic is seeking $1.5 trillion to $2 trillion in its IPO, after raising $65 billion at a $965 billion valuation in May. Both companies filed confidentially in June, and both are courting the same sovereign and long-only funds.
- Run rate: Anthropic reported $65 billion at the end of July; OpenAI is near $50 billion on a net basis.
- Accounting: Anthropic counts cloud-partner sales; OpenAI has accused it of inflating revenue, and Anthropic says it follows established practice.
- Timing: Anthropic’s listing is reportedly expected in mid-November; OpenAI’s CFO has pointed to 2027.
- Price direction: both have seen valuation talk come down this month.
Anthropic’s own price talk has slipped too, as we reported in Anthropic IPO Valuation Talk Falls to $1.5T From $2T. Two rival labs trimming price in the same month is a pattern, not a coincidence.
When will OpenAI go public?
No date is set. OpenAI confidentially filed its IPO prospectus in June. CFO Sarah Friar told employees in August that OpenAI “will be a public company in 2027.” In September, CEO Sam Altman said “right now would be an ill-advised moment to go public,” per MoneyCheck.
That delay already cost some backers. SoftBank shares dropped sharply when a 2026 listing was ruled out, as covered in SoftBank Drops 11% on OpenAI IPO Delay. This private round is what fills the gap.
Why this matters
This is the first visible down-reprice of the AI trade’s flagship private asset. The OpenAI valuation is a reference point for every AI lab, every compute contract tied to OpenAI demand, and every listed company carrying an OpenAI stake. A lower mark ripples outward.
It also says something about the funding cycle. At up to $30 billion, this would be one of the largest private raises of the year, and it still had to give ground on price. Set against the rest of the year’s mega-rounds in our 2026 AI funding tracker, the leverage is shifting from founders to capital.
For investors in listed AI names, the read-through is about cost discipline. The market is now pricing AI spending against revenue that can be audited, and private rounds are following public sentiment, not leading it. This post is not financial advice.
What to watch next
The next two weeks bring a signing deadline, a key partner’s earnings and a rival’s IPO. Each will show whether $1.25 trillion holds.
- Signatures, end of next week (around October 30): OpenAI told investors it hopes to have commitments signed by then. Watch the final size against the $30 billion cap.
- Microsoft earnings, October 28 after the close: Microsoft confirmed the date for its fiscal first-quarter results. Its commentary on OpenAI demand and AI capex will be read against this round.
- Anthropic’s public S-1 and mid-November listing (reported): where Anthropic prices will reset the comparison for OpenAI’s backers.
- The UAE compute deal: any signed capacity agreement would show what the Gulf money is buying beyond equity.
FAQ
What is OpenAI’s valuation now?
OpenAI is negotiating at $1.25 trillion pre-money, according to CNBC. With a full $30 billion raise, post-money would be about $1.28 trillion. The round is not signed.
Who is leading OpenAI’s $30 billion round?
Coatue and investors from the UAE, per CNBC’s sources. SoftBank and MGX were reportedly in talks to join as of October 19.
Why is the valuation lower than $1.4 trillion?
The FT reported some investors were hesitant at $1.4 trillion. Weaker demand, a revenue figure corrected from about $70 billion to about $50 billion, and a market selloff in AI spenders all weighed on price.
Is OpenAI still worth more than in March?
Yes. March’s round valued it at $852 billion post-money. The new roughly $1.28 trillion post-money figure is about 1.5 times higher.
How does OpenAI’s valuation compare with Anthropic’s?
Anthropic raised at $965 billion in May and is reportedly seeking $1.5 trillion to $2 trillion in its IPO. The two count revenue differently, so their run rates are not directly comparable.
When is the OpenAI IPO?
There is no date. OpenAI filed confidentially in June, and its CFO told staff in August it “will be a public company in 2027.”
Related: Texas OpenAI Lawsuit Makes 10 States Seeking ChatGPT Curbs
The bottom line
OpenAI will likely get its money. Coatue, Gulf capital and existing backers have every reason to stay close to the largest AI lab before it lists. But the terms have moved against the company.
The $150 billion cut is less important than what sits under it: a 25x revenue multiple on net figures, a $600 billion compute target, and a rival heading to market first. Expect the round to close near $1.25 trillion, and expect Anthropic’s IPO pricing in November to decide whether that number looks cheap or generous by year-end.
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Sources
- TechCrunch: OpenAI working on new $30B raise at $1.25T valuation ahead of IPO (Oct. 22, 2026), citing CNBC
- Newsquawk: CNBC headline on the $1.25T round and UAE compute talks (Oct. 22, 2026)
- MoneyCheck: OpenAI cuts valuation to $1.25 trillion, citing CNBC and the Financial Times (Oct. 23, 2026)
- Implicator: OpenAI nears $30 billion round at $1.25 trillion valuation (Oct. 22, 2026)
- TechCrunch: OpenAI’s revenue is reportedly $20 billion less than previously projected (Oct. 8, 2026), citing the Financial Times
- Microsoft: quarterly earnings release date announcement (Oct. 7, 2026)
Wealth Engine researches and drafts with AI tools and checks every figure against the sources above. How we report.
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