OpenAI hits $1.25 trillion valuation on $11B funding round
What's the story
OpenAI has reportedly raised $11 billion in a new funding round, valuing the artificial intelligence (AI) lab at a whopping $1.25 trillion. The information was first reported by Bloomberg on Friday, citing sources familiar with the matter. This amount is part of a larger funding round that is yet to be finalized and could total around $20 billion in the coming weeks.
Funding goals
OpenAI initially sought over $30 billion
Back in September, Bloomberg had reported that OpenAI was looking to raise $30 billion in its upcoming funding round. However, the current figures are way off from that target.
The company had initially sought over $30 billion at a valuation of about $1.4 trillion but scaled back amid a wider selloff in AI stocks and concerns over spending on AI infrastructure.
Market trends
Investor sentiment toward AI companies has cooled
The funding round has been backed by SoftBank and MGX. However, investor sentiment toward AI companies has cooled in the last month.
Some investors have valued rival Anthropic's planned IPO at about $1.5 trillion, lower than earlier expectations of roughly $2 trillion.
OpenAI had previously indicated it would go public this year but later postponed those plans. The company is now expected to launch its IPO sometime next year.