SAN FRANCISCO — OpenAI has raised $11 billion so far in a funding round that values the company at $1.25 trillion, Bloomberg reported on Friday, Nov. 6, citing sources familiar with the matter, according to TechCrunch and The Verge.
Related: Ramp Data Shows AI Spending Nearly Flat in Late Summer Even as Usage Kept Rising.
What the round looks like
The round has not closed and is expected to finish in the coming weeks, possibly totaling about $20 billion, TechCrunch said, citing Bloomberg. In late September, Bloomberg reported OpenAI was looking to raise $30 billion. The Verge said the company had initially hoped to raise that much at a $1.4 trillion valuation.
The valuation is up about 47% (TBR calculation) from the $852 billion set in March, when OpenAI raised $122 billion, according to The Verge.
Why the target slipped
The Verge said the earlier hopes came before tech stocks dropped and before the midterm results showed how far public opinion has turned against AI companies and data center projects. TechCrunch said the outcome has caused market jitters, with many investors anticipating regulatory challenges.
The Anthropic comparison
Rival Anthropic filed its S-1 to go public last week, The Verge reported. Bloomberg reported that some potential buyers of its IPO shares believe its valuation could be as low as $1.1 trillion, compared with the $2 trillion investors were said to expect about a month ago, according to TechCrunch. For background, see our report on Anthropic’s IPO filing.
OpenAI CEO Sam Altman said earlier this year the company would hold off on its own IPO until it can make more confident claims about model safety. He also said it is “kind of bad for the world if OpenAI waits too long to go public.”
What happens next
The final size of the round, expected within weeks, will show how much investor demand remains at this price. TechCrunch said there are expectations of an OpenAI IPO at some point next year.
Sources
- TechCrunch: OpenAI reportedly raises an additional $11 billion at a $1.25 trillion valuation
- The Verge: OpenAI valued at $1.25 trillion, as rival Anthropic nears its IPO
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