OpenAI nears $30B raise at $1.25T valuation

OpenAI is nearing the closing of a $30 billion funding round at a $1.25 trillion valuation. UAE investors and Coatue are leading the new funding round. The company lowered its valuation target from $1.4 trillion to $1.25 trillion. OpenAI is working on raising up to $30 billion at a $1.25 trillion pre-money valuation.

OpenAI has delayed its IPO plans until 2027. OpenAI CFO Sarah Friar told employees in August that the company would be publicly traded by 2027. OpenAI filed confidential paperwork for an IPO in June after its last raise valued the company at $852 billion post-money. Anthropic is seeking a $1.5 to $2 trillion valuation for its public debut.

Blackstone's Jon Gray stated that demand for AI is almost parabolic. Lam Research stock was down 10% due to supply chain constraints. Bitcoin was trading at $81,400 as stocks closed lower. The Nasdaq lost 2.6% while the S&P 500 was down 1.2%. U.S. Treasury yields plunged 15-20 basis points across the curve. The 10-year U.S. Treasury yield dropped to more than a one-month low of 4.945%. The odds of no more rate hikes this year soared to 28% from 10%. Oil prices jumped more than 3% while interest rates tumbled. The U.S. president claimed Iran is driving up oil prices prior to the U.S. Midterm Election. The odds of a Democrat sweep of both houses of Congress are at contract highs of 67%. French 10-year yields rose to 5.08%, pushing their spread to German paper to a 15-year high of 174 basis points.