OpenAI has raised its valuation to $1.25 trillion. It has scaled back its ambitions due to the AI sell-off.
At the end of March, the developer of ChatGPT was valued at $852 billion. Now it is once again worth more than Anthropic
OpenAI had hoped to raise $30 billion or more at a valuation of $1.4 trillion, but will receive only $20 billion at a valuation of $1.25 trillion, according to Bloomberg / Photo: Matthew Nichols1 / Shutterstock.com
OpenAI, the AI startup behind ChatGPT, has raised about $11 billion in the first tranche of a new funding round, in which the company was valued at $1.25 trillion, according to sources cited by Bloomberg. The remainder of the round, which could total up to $20 billion, is expected to be completed in the coming weeks, according to one of Bloomberg’s sources.
OpenAI initially expected to raise $30 billion or more at a valuation of $1.4 trillion, but later scaled back its plans amid a sell-off of AI sector stocks on the stock market, the agency reports. The company cited the $1.4 trillion figure to investors in early October, but some of them disagreed with that valuation, the Financial Times reported.
Even the $1.25 trillion figure is nearly 50% higher than OpenAI's previous valuation: in late March, it closed a $122 billion funding round with a company valuation of $852 billion.
OpenAI declined to comment to Bloomberg.
The scaling back of capital-raising plans signals a dramatic shift in the situation for the company, which previously received massive amounts of funding and played a key role in the early stages of the current artificial intelligence boom, notes Bloomberg. Since the start of the new funding round, investor sentiment toward AI has also shifted dramatically. This is due to concerns about the massive costs of building AI infrastructure, as well as the possible emergence of new obstacles to data center construction following the U.S. midterm elections.
OpenAI’s main competitor, Anthropic, may have surpassed it in valuation, reaching $965 billion in a May funding round. According to sources cited by Bloomberg and the Financial Times, the startup had planned to go public no later than Thanksgiving (November 26). Wall Street had previously estimated its market capitalization at $1.5 trillion, but following the stock sell-off on November 5, investors are discussing a range of $1.2–1.3 trillion, with some suggesting a valuation as low as $1.1 trillion, Bloomberg reports.
This article was AI-translated and verified by a human editor
