OpenAI is seeking at least $30 billion in fresh funding at a valuation of about $1.4 trillion, while the 30-year US Treasury yield climbed above 5.61% to its highest level since 2002.
Oil prices fell as Middle East exports improved, while gold recovered from a more than seven-week low.
OpenAI seeking $30 billion funding
OpenAI is seeking to raise at least $30 billion from investors at a valuation of about $1.4 trillion, according to Bloomberg News.
The discussions remain at an early stage, and the terms could change, the report said, citing people familiar with the matter.
The proposed valuation would be before the new capital is added. Bloomberg previously reported that OpenAI was considering a funding round at a valuation of about $1.2 trillion.
The fundraising could serve as a bridge round as OpenAI delays a potential initial public offering.
CEO Sam Altman recently said the company would not go public this year, describing the current environment as an “ill-advised moment” for an IPO and saying the company should focus on AI safety concerns.
OpenAI last raised $122 billion in March at an $852 billion valuation, including the money raised.
The company’s annualized revenue run rate is now nearing $70 billion, according to Axios, after enterprise sales more than doubled since July.
OpenAI also introduced an always-on AI agent called Dots at its developer event on Tuesday and launched a $500-a-month premium subscription tier.
Anthropic, meanwhile, is preparing for a potential IPO that could value the company at more than $2 trillion, according to Financial Times.
Treasury yields hit new highs
The 30-year US Treasury yield rose for a sixth consecutive day, surpassing 5.62% and reaching a level last seen in 2002, according to Bloomberg.
The 10-year Treasury yield reached a new high of 5.29%.
The 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 also 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 changes in the Fed outlook, surged to 4.96%.
Oil prices fall 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 crude 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.
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.
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