Openai Reportedly Raises $11 Billion At $1.25 Trillion Valuation
The reported funding is part of a round that could grow to $20 billion, below OpenAI’s earlier target, as investors reassess AI company valuations.
OpenAI has reportedly raised $11 billion in a new funding round valuing the company at $1.25 trillion. The round has not closed and could bring in more money, according to Bloomberg reporting cited by TechCrunch and The Verge. The reported figures come amid questions about AI valuations and the timing of public offerings by OpenAI and its rival Anthropic.
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A funding round still in progress
TechCrunch reported that the $11 billion raised so far is part of a larger round expected to close in the coming weeks. A source told Bloomberg the total could reach about $20 billion. The Verge also reported that OpenAI is pursuing additional investment that could bring the round to that level.
That would remain below OpenAI’s earlier ambitions. TechCrunch said Bloomberg reported in late September that the company was seeking $30 billion. According to The Verge, OpenAI had initially hoped to raise that amount at a valuation of $1.4 trillion, before tech stocks fell. The Verge reported that OpenAI previously raised $122 billion from investors in March at an $852 billion valuation.
The figures remain reported rather than confirmed by the company in the accounts provided. TechCrunch said it had contacted OpenAI for comment and would update its story if the company responded.
Investor sentiment and the IPO question
Both outlets placed the funding news against a more difficult backdrop for AI companies. The Verge linked the change in OpenAI’s fundraising ambitions to falling tech stocks and the U.S. midterm results, which it said reflected opposition to AI companies and data center projects. TechCrunch described the midterms as a Democratic landslide and reported that negative voter sentiment toward data centers had unsettled the market, with some anticipating regulatory challenges.
Anthropic is also part of the valuation picture. The Verge reported that OpenAI’s rival filed its S-1 to go public last week. TechCrunch, citing a separate Bloomberg report, said some potential buyers of Anthropic IPO shares believe it could be valued as low as $1.1 trillion. That is below the $2 trillion valuation TechCrunch said investors had been expecting roughly a month earlier.
OpenAI’s public-market plans
The outlets described OpenAI’s IPO timing differently. TechCrunch said the company had previously indicated it might go public this year, then delayed those plans, and reported expectations of an IPO next year. The Verge said CEO Sam Altman has not given a specific timeline. According to The Verge, Altman said earlier this year that OpenAI was holding off until it could make more confident claims about the safety of its models, while also saying that waiting too long to go public could be harmful.
Sources
This story was compiled by AI from the reports below. Read the originals for the full details.