OpenAI Reportedly Raises $11 Billion at $1.25 Trillion Valuation

OpenAI has reportedly raised $11 billion so far in a new funding round that values the AI lab at $1.25 trillion, according to Bloomberg. The $11 billion is part of a larger round that has not closed yet and could total about $20 billion in the coming weeks. The figures fall below a late September report that OpenAI was looking to raise $30 billion.

Funding round details

Bloomberg reported on the new funding on Friday, citing sources familiar with the matter. The round is expected to close in the coming weeks. TechCrunch has reached out to OpenAI for comment and will update if it responds.

Anthropic IPO valuation pressure

The report comes only hours after Bloomberg reported that potential buyers of shares in the IPO of OpenAI's chief competitor, Anthropic, are eyeing a substantially lower valuation than Anthropic had targeted. Some potential buyers believe Anthropic's valuation could be as low as $1.1 trillion, compared with the $2 trillion that investors were said to be expecting roughly a month ago.

OpenAI IPO plans and market mood

OpenAI previously intimated that it would go public this year but subsequently delayed its plans. There are expectations that the company will IPO next year at some point. The market for AI hangs in a particularly precarious place. The Democratic landslide in the U.S. midterms, and overwhelmingly negative voter sentiment around data centers, has caused jitters throughout the market, with many anticipating potential regulatory challenges in the future.

Sources: TechCrunch · The Verge · Techmeme