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BusinessQuiet 19d · day 25

OpenAI races to raise $30B at $1.4T+ before Anthropic's IPO

Reuters reports OpenAI is accelerating a funding round to lock in investors ahead of Anthropic's expected mid-November stock market debut.

newest coverage 18d agosummary written 19d ago43 pieces99 likes & upvotes40 comments NewswiresXMastodonRedditHacker NewsGoogle NewsYouTube

Part of a larger narrative

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What to know

  • OpenAI is seeking to close a roughly $30 billion raise at a valuation above $1.4 trillion before Anthropic's expected mid-November IPO.
  • Anthropic reported $16.8 billion in Q3 revenue, a second straight adjusted profit, and is targeting a public valuation above $2 trillion.
  • Both labs are drawing from an overlapping investor base amid rising rates and volatile tech stocks, forcing investors to choose between two competing trillion-dollar offerings in rapid succession.
  • OpenAI wants to lock in capital before Anthropic's IPO disclosures give investors fuller financial detail for direct comparison.
some voices

OpenAI is opportunistically locking in capital now, before market appetite or AI valuations potentially sour, similar to past pre-IPO stakeholder moves.

  • “They’re trying to front run the IPO to get liquidity before the IPO, like Google did with SpaceX. No one knows what’s gonna happen post the first true AI ipo funding could dry up especially if the financials are bad.”

    ecrane2018 · r/stocks ↗
some voices

The rapid fundraising race seems at odds with earlier industry talk of slowing frontier model development.

  • “Didn't they all agree to an idea that the frontier model development pace must "slow down"?”

    Life-is-beautiful- · r/stocks ↗
some voices

The two labs' valuations are locked in a game-theoretic feedback loop, each raise pressuring the other's IPO price.

  • “OpenAI is raising at a $1.4T (source: Bloomberg). That puts pressure on Anthropic to IPO at 1.5-1.6T+ minimum.”

    @fredaduan · X ↗

OpenAI ChatGPT maker, raising capitalAnthropic AI lab preparing IPOSarah FriarSarah Friar OpenAI Chief Financial OfficerSoftBank Group Existing OpenAI backerMGX Abu Dhabi-based investor

OpenAI races to raise $30B at $1.4T+ before Anthropic's IPO
x.com

How it unfolded 3 developments, newest first · click a bar or a number to jump articlespostscomments

Peak 31 pieces in 6h at Oct 19, 6 PM; 43 pieces over 25 days (28 articles · 1 video · 8 posts · 6 comments) Oct 14, 6 PM — 1 piece · 1 article — Newswires 1Oct 15, 12 AM — quietOct 15, 6 AM — quietOct 15, 12 PM — quietOct 15, 6 PM — quietOct 16, 12 AM — quietOct 16, 6 AM — quietOct 16, 12 PM — quietOct 16, 6 PM — quietOct 17, 12 AM — quietOct 17, 6 AM — quietOct 17, 12 PM — quietOct 17, 6 PM — quietOct 18, 12 AM — quietOct 18, 6 AM — quietOct 18, 12 PM — 1 piece · 1 post — X 1Oct 18, 6 PM — quietOct 19, 12 AM — quietOct 19, 6 AM — quietOct 19, 12 PM — quietOct 19, 6 PM — 31 pieces · 25 articles · 4 posts · 2 comments — Newswires 17, Google News 8, Reddit 4, +2 moreOct 20, 12 AM — 3 pieces · 1 article · 1 video · 1 post — Newswires 1, Mastodon 1, YouTube 1Oct 20, 6 AM — 5 pieces · 1 article · 1 post · 3 comments — Reddit 3, Mastodon 1, Newswires 1Oct 20, 12 PM — 1 piece · 1 post — X 1Oct 20, 6 PM — quietOct 21, 12 AM — 1 piece · 1 comment — Reddit 1Oct 21, 6 AM — quietOct 21, 12 PM — quietOct 21, 6 PM — quietOct 22, 12 AM — quietOct 22, 6 AM — quietOct 22, 12 PM — quietOct 22, 6 PM — quietOct 23, 12 AM — quietOct 23, 6 AM — quietOct 23, 12 PM — quietOct 23, 6 PM — quietOct 24, 12 AM — quietOct 24, 6 AM — quietOct 24, 12 PM — quietOct 24, 6 PM — quietOct 25, 12 AM — quietOct 25, 6 AM — quietOct 25, 12 PM — quietOct 25, 6 PM — quietOct 26, 12 AM — quietOct 26, 6 AM — quietOct 26, 12 PM — quietOct 26, 6 PM — quietOct 27, 12 AM — quietOct 27, 6 AM — quietOct 27, 12 PM — quietOct 27, 6 PM — quietOct 28, 12 AM — quietOct 28, 6 AM — quietOct 28, 12 PM — quietOct 28, 6 PM — quietOct 29, 12 AM — quietOct 29, 6 AM — quietOct 29, 12 PM — quietOct 29, 6 PM — quietOct 30, 12 AM — quietOct 30, 6 AM — quietOct 30, 12 PM — quietOct 30, 6 PM — quietOct 31, 12 AM — quietOct 31, 6 AM — quietOct 31, 12 PM — quietOct 31, 6 PM — quietNov 1, 12 AM — quietNov 1, 5 AM — quietNov 1, 11 AM — quietNov 1, 5 PM — quietNov 1, 11 PM — quietNov 2, 5 AM — quietNov 2, 11 AM — quietNov 2, 5 PM — quietNov 2, 11 PM — quietNov 3, 5 AM — quietNov 3, 11 AM — quietNov 3, 5 PM — quietNov 3, 11 PM — quietNov 4, 5 AM — quietNov 4, 11 AM — quietNov 4, 5 PM — quietNov 4, 11 PM — quietNov 5, 5 AM — quietNov 5, 11 AM — quietNov 5, 5 PM — quietNov 5, 11 PM — quietNov 6, 5 AM — quietNov 6, 11 AM — quietNov 6, 5 PM — quietNov 6, 11 PM — quietYesterday, 5 AM — quietYesterday, 11 AM — quietYesterday, 5 PM — quietYesterday, 11 PM — quietToday, 5 AM — quietToday, 11 AM — quiet 12–3
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  1. 3

    Reuters details competing growth pitches and accounting dispute

    OpenAI is pitching investors on $50 billion annualized revenue growing to $70 billion by year-end after its GPT-6 Astra launch and price cuts, while noting it has accused Anthropic of inflating revenue by counting gross contract value through cloud resellers; Anthropic says it follows standard accounting.

    “They’re trying to front run the IPO to get liquidity before the IPO, like Google did with SpaceX.”
    — ecrane2018, Reddit commenter · source
    1. 4 outlets OpenAI seeks to accelerate fundraising ahead of Anthropic IPO, sources say

      first by TradingView, 19d ago · also Investing.com News, Channel News Asia, Reuters

      1 more headline

    • OpenAI is reportedly racing to raise $30 billion at a valuation above $1.4 trillion, ahead of Anthropic’s expected November IPO, per Bloomberg OpenAI is reportedly telling investors it has $50 billion in annualized revenue and is targeting $70 billion by year-end.

      @unusual_whalesX19d ago95▲view on X ↗
    2 more of the top 3 · 7 posts in this stretch

    • SPCX IPO raised about $75b and was the largest IPO ever. For reference the second largest US IPO was SKHY at $26b. We won't know until the S-1 is releaed, but leaks suggest Anthropic is trying to raise as much as $100b in their IPO. So yes, $30b is a substantial amount of money to remove from the captial pool. Based on the way you wrote your…

      greenpride32r/stocks19d agoview on r/stocks ↗

    • They’re trying to front run the IPO to get liquidity before the IPO, like Google did with SpaceX. No one knows what’s gonna happen post the first true AI ipo funding could dry up especially if the financials are bad. So best to lock it up now while the markets hot and has appetite for the risk even if you aren’t planing major expansions

      ecrane2018r/stocks19d agoview on r/stocks ↗
    all of them →
  2. 2

    OpenAI accelerates ~$30B raise at $1.4T+ valuation

    Reuters reports OpenAI is racing to secure investor commitments, with SoftBank, MGX and other existing backers in talks to join a roughly $30 billion round, in an unusually fast process meant to get ahead of Anthropic's expected mid-November IPO.

    “OpenAI is racing to secure investor commitments before rival Anthropic's expected public market debut in mid-November, in an unusually fast fundraising that could value the ChatGPT maker at over $1.4 trillion…”
    — Reuters

    1. 7 outlets first by International Business Times, 19d ago · also 24/7 Wall St., WinBuzzer, Storyboard18, Crypto Briefing, Reuters, Quartz · read ↗

    2. 6 outlets OpenAI, Anthropic Said to Race for Funding Ahead of IPOs Targeting $1.4T-$1.5T Valuations

      first by Bitcoin Insider, 19d ago · also Tech Funding News, CTech, Tech in Asia, Crypto Briefing, Seeking Alpha

      5 more headlines
  3. 1

    Investor @fredaduan frames the raise as valuation game theory

    A social media analysis argues OpenAI's $1.4 trillion raise pressures Anthropic to seek an even higher IPO valuation given their relative annualized revenue run rates.

    “OpenAI is raising at a $1.4T (source: Bloomberg). That puts pressure on Anthropic to IPO at 1.5-1.6T+ minimum.”
    — @fredaduan
    1. 1 outlet Anthropic Narrows Revenue Gap With OpenAI Ahead of Its IPO

      first by PYMNTS.com, 24d ago

    • A bit of game theory at play: 1/ OpenAI is raising at a $1.4T (source: Bloomberg). That puts pressure on Anthropic to IPO at 1.5-1.6T+ minimum. 2/ OpenAI has guided $70B+ in year-end ARR (source: Bloomberg). With the latest reported run rates at ~$50B for OpenAI and $ 70B+ for Anthropic, Anthrop...

      @fredaduanX20d agoview on X ↗
  4. background

    Anthropic discloses Q3 revenue surge and second straight profit — At a San Francisco investor day, Anthropic said third-quarter revenue reached $16.8 billion, up 45% from Q2, with an 11% adjusted operating margin and $1.70 earned per dollar of compute spent, marking its second consecutive adjusted-profit quarter.

What people are saying 4 voices from 1 site · best of 8 · verbatim