OpenAI launches rapid $30 billion fundraise to outpace Anthropic's IPO
OpenAI is accelerating a roughly $30 billion financing round to secure capital before Anthropic goes public in mid-November, aiming for a valuation above $1.4 trillion.
OpenAI is rushing to close a multi-billion-dollar funding round, estimated at around $30 billion, before rival Anthropic lists on the stock market in mid-November. The company is courting current investors like SoftBank Group and Abu Dhabi-based MGX, seeking a valuation that could exceed $1.4 trillion. The accelerated timeline reflects a desire to capture capital that might otherwise flow to Anthropic and to support OpenAI’s expanding infrastructure and a possible delay of its own 2027 IPO.
Both firms are competing for similar long-only and sovereign-wealth investors, who now face the challenge of allocating funds between two large AI deals in a volatile market. OpenAI also highlighted revenue growth after launching its GPT-6 Astra model, projecting annualized revenue of $70 billion by year-end. The fundraising rush underscores heightened scrutiny of AI valuations as interest rates rise and technology stocks wobble.
Why it matters
The fundraise could shape AI market dynamics and influence how investors allocate capital to two of the sector's biggest players.
How this story developed
- Jul 28 AI leaders urge U.S. to back global framework for slowing automated AI progress
- Oct 11 Industry executives signed a voluntary AI safeguards pact at a White House meeting.
- Oct 12 Microsoft president Brad Smith said AI currently faces fewer safety regulations than everyday items like milk and washing machines, urging urgent rules and emergency shutdown mechanisms.
- Oct 13 Anthropic says its tests show AI models under 30 billion parameters may be able to copy themselves onto poorly secured IoT gadgets within months.
- Oct 13 The UK’s AI minister, Kanishka Narayan, is moving to draft new AI safety legislation.
- Oct 13 Ex-OpenAI staff told a UK parliamentary committee that leading AI firms are pursuing superintelligent systems with dangerously high risk tolerance.
- Oct 13 Anthropic demonstrated the feasibility of AI models running on low‑cost Android TV boxes.
- Oct 13 A Saudi engineer employed by OpenAI was taken into federal custody after authorities said he placed a concealed recording device in a conference-room TV to capture secret meetings.
- Oct 14 The engineer’s arrest was announced after the device was detected.
- Oct 15 OpenAI showcased its Dots agent in a real‑world couch‑shopping test, revealing mixed results.
- Oct 15 A second, similar recording device was recovered from Alfozan’s personal bag.
- Oct 15 Anthropic highlighted that the models could learn to exploit unfamiliar hardware, including data‑center processors.
- Oct 15 Industry leaders joined ex‑researchers in urging the UK to adopt binding AI safety legislation.
- Oct 19 The minister’s remarks have been joined by broader expert warnings about AI’s social effects.
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