OpenAI is racing to secure investor commitments before Anthropic's expected public market debut in mid-November, according to two people familiar with the matter. The fundraising could value OpenAI above $1.4 trillion, the people said. SoftBank Group, Abu Dhabi-based MGX and other existing OpenAI backers are discussing participation in the roughly $30 billion round, one person said. The timetable partly reflects OpenAI's desire to precede Anthropic as both companies increasingly approach similar investors, the people said. OpenAI also wants to capitalize on recent revenue growth after launching new models, the people said.
OpenAI met long-only funds and sovereign wealth funds last week while Anthropic hosted an investor day. The funding round is expected to proceed faster than usual for an offering of this size, the people said. Investors familiar with OpenAI say the company needs capital to fund substantial infrastructure commitments. Those investors also say OpenAI needs to strengthen the company's balance sheet if deteriorating IPO markets further delay a planned 2027 listing. High demand for both companies' shares leaves investors evaluating and allocating capital to complex, competing offerings within days or weeks of each other. Some investors see OpenAI's fundraising as an attempt to secure money that funds might otherwise allocate to Anthropic's IPO, the people said.
OpenAI is pitching growth that accelerated after the GPT-6 Astra launch, telling investors annualized revenue reached $50 billion, according to one person. OpenAI expects annualized revenue to reach $70 billion by year-end, the person said. OpenAI said price cuts on cheaper models boosted usage, according to the person. OpenAI told investors the company can lower AI model prices further, the person added. Anthropic's annualized revenue reached roughly $65 billion by July. Anthropic told investors quarterly revenue rose to $16.8 billion in this year's third quarter from $11.6 billion in the second quarter. Slowing month-to-month revenue growth has raised investor concerns about Anthropic's valuation.
OpenAI wants to finish fundraising before Anthropic's financial disclosures provide a fuller business picture and invite comparisons between the companies, one person said. The disclosures could prompt investors to demand more revenue-growth and financial-outlook details from OpenAI Chief Financial Officer Sarah Friar, the person added. OpenAI records revenue on a net basis, subtracting partner shares upfront. OpenAI has accused Anthropic of inflating revenue by counting the full gross value of contracts sold through third-party cloud providers. Anthropic previously said the company follows established accounting practices. Edward Best, capital markets co-chair at Willkie Farr & Gallagher, suggested hypothetically that OpenAI could want to establish a valuation before facing comparisons. Best is not working on the deal and described the competition to become public as principally between the two companies.
OpenAI was last valued at $852 billion in March this year after a record-breaking $122 billion funding round. Amazon.com agreed to invest up to $50 billion in OpenAI as part of that round. The Financial Times previously reported some details of OpenAI's potential fundraising. OpenAI and SoftBank declined to comment. Anthropic and MGX did not immediately respond to requests for comment.
Bankers and investors said several companies preparing IPOs have decided to wait until after Anthropic's planned listing to avoid competing for demand amid market volatility and falling AI stocks. Some late-stage companies are also scheduling private fundraising rounds to avoid Anthropic's expected debut, the bankers and investors said. Some existing and prospective Anthropic investors have argued for a debut valuation closer to $1.5 trillion rather than the desired $2 trillion after third-quarter results missed expectations.
The competition for capital comes amid concerns about rising interest rates, technology-stock volatility and AI valuations. Oil-price volatility, rising bond yields and growing AI-safety concerns have weakened investor appetite for technology stocks during choppy trading since September. Investors are scrutinizing AI infrastructure costs, including debt financing for data centers. CoreWeave's shares and debt fell sharply last week as investors scrutinized nearly $50 billion in borrowings used to finance rapid expansion.
Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy have either withdrawn or paused listings amid market volatility and valuation concerns. Nuclear services company Holtec cited uncertainty around data-center demand as the main reason for withdrawing a US listing last month. Companies in the Philadelphia Semiconductor Index, widely viewed as a proxy for AI-related semiconductor demand, have lost $1.6 trillion in less than two weeks, while AI infrastructure companies face particular pressure.
OpenAI Accelerates Fundraising Ahead of Anthropic's Expected IPO
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Summary
OpenAI is accelerating fundraising efforts amid CFT concerns, aiming to close a round before Anthropic’s expected mid-November IPO. The round could value OpenAI above $1.4 trillion, with SoftBank Group and MGX as potential investors. The company plans to use the funds to boost infrastructure and liquidity ahead of its 2027 IPO. OpenAI reported $50 billion in annualized revenue, with a target of $70 billion by year-end. Crypto markets remain closely watched as major players prepare for public listings.
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