OpenAI races to secure $30bn funding ahead of Anthropic’s public listing
The ChatGPT maker seeks to lock in investor capital before its rival goes public in mid-November, potentially valuing the firm at $1.4 trillion.
Key points
- OpenAI aims to close a $30bn funding round before Anthropic’s mid-November IPO.
- The round could value OpenAI at over $1.4tn, up from $852bn in March.
- Revenue accounting differences complicate comparisons between the two rivals.
OpenAI is accelerating efforts to secure a $30bn funding round before Anthropic lists its shares in mid-November, according to reports. This move allows the ChatGPT maker to lock in investor commitments that might otherwise flow to its rival’s initial public offering. Reuters reported the plan on Monday, citing two people familiar with the matter, while OpenAI and SoftBank declined to comment.
The proposed round could value OpenAI at more than $1.4 trillion, significantly higher than its $852bn valuation in March. That earlier valuation followed a $122bn round that included up to $50bn from Amazon. Existing backers SoftBank Group and Abu Dhabi-based MGX are in talks to join the new round, as are long-only funds and sovereign wealth funds.
What we know
Some investors view OpenAI’s timing as an attempt to secure capital that might otherwise go into Anthropic’s listing, Reuters reported. Both companies are courting similar investor pools. OpenAI states its annualised revenue reached $50bn after launching GPT-6 Astra, expecting $70bn by year-end. Earlier reporting placed Anthropic’s annualised revenue at about $65bn by July.
However, the two firms count revenue differently. OpenAI books sales after subtracting partner shares, accusing Anthropic of inflating figures by counting full contract values through cloud providers. Anthropic told Reuters it follows established accounting practices. Anthropic’s third-quarter revenue rose to $16.8bn from $11.6bn in the second quarter, falling short of some expectations.
Some investors argued for a debut valuation near $1.5tn for Anthropic rather than the $2tn the company wants. Edward Best, a capital markets lawyer at Willkie Farr & Gallagher, told Reuters it is a “two-horse race” for public status. OpenAI plans its own listing for 2027, using new money to meet infrastructure commitments if a weaker IPO market delays that plan.
Defender's checklist
- Monitor official announcements from OpenAI and Anthropic regarding funding rounds and IPO timelines.
- Verify revenue figures by checking accounting methodologies used by each company.
- Track valuation changes in major tech firms to understand market sentiment.
- Review investment strategies to assess exposure to pre-IPO technology companies.
The background in plain language
Initial public offerings allow private companies to sell shares to the public, setting a market-based valuation. Funding rounds involve private investors buying stakes before listing. Valuations can fluctuate based on revenue growth, market conditions, and investor appetite. Accounting methods for revenue recognition vary between firms, affecting direct comparisons. Teams usually review these factors to understand a company’s financial health and growth trajectory before making investment decisions or assessing market competition.
What to do and how to stay safe
- Data classification is the primary control mechanism for preventing leaks.
- Standard frameworks provide a free structure for risk assessment.
- Delegating technical checks to vendors reduces internal workload.
AI governance for small teams relies on clear data rules and consistent human oversight, not expensive software. Start by classifying your data and defining what can be shared with AI tools.
Step-by-step guide: AI Governance for Small Teams: Practical Controls and Cost
General security guidance from the TechWire Beat newsroom. It is not confirmed advice from the organisations named in this story.
