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OpenAI is working on a new funding round at a $1.25 trillion valuation, with a target of raising $30 billion, according to TechCrunch on October 22. Should OpenAI achieve the over $1 trillion valuation, it would break records as the most highly valued private company ever, surpassing previous records held by other AI companies. The raise comes as OpenAI prepares for a potential initial public offering in the coming years. The astronomical valuation reflects investor confidence in OpenAI's market position and potential profitability as AI becomes increasingly central to computing infrastructure. However, the valuation also raises questions about whether market expectations can be met given competition from other AI labs and the capital intensity of building large language models.