OpenAI is reportedly seeking to raise at least $30 billion in new funding at a valuation of roughly $1.4 trillion, according to Bloomberg News. The discussions are still in early stages and terms could shift, the report said, citing people familiar with the matter. The proposed valuation would be pre-money, meaning it excludes the new capital.
This potential round would mark a significant step up from the company's previous valuation of $852 billion, which was set in March when OpenAI raised $122 billion. The new figure also exceeds the $1.2 trillion valuation Bloomberg had reported earlier. The fundraising could serve as a bridge round as OpenAI delays a potential initial public offering, with CEO Sam Altman recently calling the current environment an “ill-advised moment” for an IPO and emphasizing the need to focus on AI safety.
OpenAI's annualized revenue run rate is now approaching $70 billion, according to Axios, after enterprise sales more than doubled since July. At its developer event on Tuesday, the company introduced an always-on AI agent called Dots and launched a $500-per-month premium subscription tier. Meanwhile, rival Anthropic is reportedly preparing for an IPO that could value it at over $2 trillion, according to the Financial Times.
Treasury yields hit multi-decade highs
The 30-year US Treasury yield rose for a sixth consecutive day, surpassing 5.62% and reaching a level not seen since 2002, according to Bloomberg. The 10-year yield also hit a new high of 5.29%. This move comes amid a broader selloff in global government bonds, with elevated energy prices adding to inflation concerns and heavy corporate-debt issuance weighing on the market.
The latest rise in yields reflects expectations that central banks, including the Federal Reserve, could keep interest rates higher for longer. However, those expectations moderated after New York Fed President John Williams said “one further upward adjustment” to the Fed's target range “may be appropriate late this year” to contain inflation. The two-year Treasury yield, which is more sensitive to Fed policy expectations, surged to 4.96%.
Oil slips as Middle East exports recover
Oil prices declined on Tuesday as investors focused on signs of recovering crude exports from the Middle East and ongoing concerns about supply disruptions linked to the war on Iran. Brent crude futures fell 2.5% to $102.62 a barrel, while West Texas Intermediate dropped 3.6% to $89.27. Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline, according to trade sources and shipping data.
Crude exports from key Middle Eastern producers reached 16.328 million barrels per day in September, the highest level since the war began in late February, according to Kpler data. Despite the daily decline, Brent and WTI remained on track for monthly gains of about 15% and 5.7%, respectively.
Gold rebounds from seven-week low
Gold prices rose on Tuesday after falling nearly 4% in the previous session, although the metal remained below its 100-day moving average. Spot gold was up 1.4% at $4,171.98 an ounce, while US gold futures settled about 0.82% higher at $4,202.60. Gold had fallen to $4,110.55 on Monday, its lowest level since August 5, amid higher Treasury yields, a stronger dollar, elevated energy prices and expectations for further Fed rate increases.
Higher Treasury yields increase the opportunity cost of holding non-yielding gold, while a stronger dollar makes bullion more expensive for overseas buyers. Markets were pricing in a 68% probability of a Fed rate hike in October and a 95% probability of an increase in December, according to the CME FedWatch Tool. Investors are awaiting ADP employment and PCE inflation data on Wednesday, followed by nonfarm payrolls on Friday.
This article is for informational purposes only and does not constitute financial advice.
