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OpenAI has reportedly raised $11 billion so far in a new funding round that values the company at $1.25 trillion, according to Bloomberg reports relayed on November 6 by TechCrunch and The Verge. The round has not closed, and OpenAI had not commented when TechCrunch published.
Key facts
- Raised so far: $11 billion, at a $1.25 trillion valuation, per Bloomberg.
- Expected total: about $20 billion once the round closes, which a source said could happen in the coming weeks.
- Original target: $30 billion. Bloomberg reported that goal in late September, according to TechCrunch.
- The Verge reports OpenAI had initially hoped for a higher valuation of $1.4 trillion.
- Previous round: $122 billion raised in March at an $852 billion valuation, per The Verge.
A smaller round than planned
The current figures fall well short of the $30 billion OpenAI was seeking. The Verge, citing Bloomberg, links the shortfall to a drop in tech stocks and to the midterm election results, which it says showed how far public opinion has turned against AI companies and data center projects. TechCrunch makes a similar point, describing the Democratic landslide and negative voter sentiment about data centers as a source of jitters across the AI market, with regulatory challenges anticipated.
The Verge also notes that the Bloomberg report echoes Financial Times and Wall Street Journal coverage from the previous week, which suggests the outline of the round has been circulating for some time.
The Anthropic comparison
The timing overlaps with news on OpenAI's chief rival. The Verge says Anthropic filed its S-1 to go public the week before. TechCrunch reports, citing Bloomberg, that potential buyers of Anthropic's IPO shares are eyeing a substantially lower valuation than targeted. Some believe it could be as low as $1.1 trillion, against the $2 trillion investors were said to expect roughly a month earlier.
If those figures hold, OpenAI's private valuation of $1.25 trillion would sit above the low end of what buyers are considering for Anthropic. The sources do not draw that comparison directly, and the two numbers come from different processes: a private round and a prospective public offering.
OpenAI's IPO position
TechCrunch says OpenAI previously suggested it would go public this year but delayed, and that expectations now point to an IPO sometime next year. The Verge reports that CEO Sam Altman said earlier this year the company is holding off until it can make more confident claims about its models' safety. He gave no timeline, but said: "I think it's also kind of bad for the world if OpenAI waits too long to go public."
What to watch
- Whether the round closes at about $20 billion, and whether the $1.25 trillion valuation holds.
- Any confirmation or comment from OpenAI, which TechCrunch said it would add if received.
- How Anthropic's IPO is priced, which may shape expectations for OpenAI's own listing.
- Whether regulatory scrutiny of data centers materializes, as some market participants anticipate.
All figures are based on anonymous sources cited by Bloomberg and remain unconfirmed by OpenAI.
