The Race for Capital in the AI Sector
OpenAI is currently engaged in an urgent effort to secure approximately $30 billion in new funding, aiming to finalize the deal before Anthropic’s anticipated mid-November IPO. This funding round, if successful, could push the valuation of the ChatGPT creator beyond $1.4 trillion. While major backers like SoftBank and Abu Dhabi’s MGX are reportedly in discussions to participate, sources indicate that no formal term sheets have been signed yet, and the process remains driven by investor demand.
Strategic Timing and Market Benchmarking
The urgency behind this move is largely strategic. Both OpenAI and Anthropic compete for the same pool of sovereign and institutional capital. By securing a valuation before Anthropic’s S-1 filing becomes public, OpenAI hopes to set its own market benchmark rather than having its financial performance measured against its rival. Edward Best, a capital markets expert, noted that OpenAI likely wants to avoid a direct comparison that could complicate its valuation narrative.
The two companies also utilize different accounting methodologies, which adds complexity to the comparison. OpenAI reports revenue net of partner shares, whereas Anthropic books gross sales through cloud channels. A public filing from Anthropic would force these differences into the spotlight, potentially impacting how investors view OpenAI’s growth metrics.
Growth Claims and Market Skepticism
To justify its $1.4 trillion valuation, OpenAI has been highlighting strong growth, projecting an annualized revenue of $50 billion, with expectations to reach $70 billion by the end of the year. However, these figures have faced scrutiny; some reports suggest the actual run-rate is lower than previously signaled, and analysts have cautioned that annualized run-rate metrics can be misleading in the volatile AI sector.
Market conditions have also introduced a layer of caution. With the Philadelphia Semiconductor Index experiencing significant volatility and several infrastructure-related listings being paused, investors are becoming more selective. Skeptics, including research firm New Constructs, have questioned the long-term profitability of closed-source AI models, labeling the current valuation trends as unsustainable. Despite these concerns, OpenAI continues to court investors, though CEO Sam Altman has clarified that an IPO is unlikely in 2026, with reports suggesting a potential listing in 2027.
Source: AI Daily News. This story was rewritten and translated for our readers.