OpenAI has reportedly raised $11 billion in a new funding round that values the AI lab at $1.25 trillion, Bloomberg reported on Friday, citing sources familiar with the matter. The round has not yet closed and could total about $20 billion in the coming weeks, well short of the $30 billion OpenAI was reportedly looking to raise in late September.
The latest injection brings OpenAI's total raised in this round to $11 billion, according to Bloomberg. The outlet reported that the round could total roughly $20 billion when it closes. That is a significant reduction from earlier ambitions: in late September, Bloomberg reported that OpenAI was seeking $30 billion. TechCrunch has reached out to OpenAI for comment.
OpenAI had previously indicated it would go public this year but later delayed its plans. There are expectations that it will go public sometime next year.
The fundraising news comes hours after Bloomberg also reported that potential buyers of shares in Anthropic's IPO are eyeing a substantially lower valuation than the $2 trillion investors were said to be expecting roughly a month ago, with some believing the figure could be as low as $1.1 trillion.
The broader AI market is facing uncertainty. A Democratic landslide in the U.S. midterms and strong negative voter sentiment around data centers have caused market jitters, with many anticipating potential regulatory challenges ahead.
Analysis
Why This Matters
- OpenAI's valuation at $1.25 trillion cements its position as one of the most valuable private companies globally, with significant implications for the AI sector's capital markets.
- The $10 billion shortfall between the initial target and the expected close suggests investor caution, even for the highest-profile AI firm, amid regulatory and political headwinds.
- The contrasting valuation signals between OpenAI and Anthropic's IPO indicate a possible recalibration of AI company worth by investors.
Background
OpenAI is the developer of ChatGPT and a leading AI research lab. After a period of rapid growth, the company has faced increasing scrutiny over data center energy use and AI safety, themes that resonated in the recent U.S. midterm elections. The company's delayed IPO plans reflect a broader climate of uncertainty in the AI market.
What to Watch
- The final close of the funding round and whether it reaches $20 billion or higher.
- OpenAI's IPO timeline; a public listing is expected next year.
- Regulatory developments in the U.S. that could affect data center expansion and AI company valuations.
Checked
10 claims in this story checked against 1 source: 10 supported.
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- SupportedOpenAI reportedly raised an additional $11 billion at a $1.25 trillion valuation.AI News & Artificial Intelligence | TechCrunch: “OpenAI reportedly raises an additional $11 billion at a $1.25 trillion valuation.”
- SupportedThe round could total about $20 billion, below the earlier $30 billion target.AI News & Artificial Intelligence | TechCrunch: “The round is expected to close in the coming weeks and could total about $20 billion, a source told Bloomberg. In late September, Bloomberg reported that OpenAI was looking to raise $30 billion in the upcoming round. The current figures fall well short of that target.”
- SupportedBloomberg reported the $11 billion raise on Friday, citing sources familiar with the matter.AI News & Artificial Intelligence | TechCrunch: “Bloomberg reported on the new funding on Friday, citing sources familiar with the matter.”
- SupportedThe round has not yet closed and could total about $20 billion in the coming weeks.AI News & Artificial Intelligence | TechCrunch: “The $11 billion is part of a larger funding round that hasn’t closed yet, according to the outlet. The round is expected to close in the coming weeks and could total about $20 billion, a source told Bloomberg.”
- SupportedOpenAI was looking to raise $30 billion in the round in late September.AI News & Artificial Intelligence | TechCrunch: “In late September, Bloomberg reported that OpenAI was looking to raise $30 billion in the upcoming round.”
- SupportedThe $11 billion is the total raised so far in this round.AI News & Artificial Intelligence | TechCrunch: “OpenAI has reportedly raised $11 billion so far in a new funding round that values the AI lab at $1.25 trillion.”
- SupportedTechCrunch has reached out to OpenAI for comment.AI News & Artificial Intelligence | TechCrunch: “TechCrunch has reached out to OpenAI for comment and will update this story if it responds.”
- SupportedOpenAI had indicated it would go public this year, delayed its plans, and is expected to IPO next year.AI News & Artificial Intelligence | TechCrunch: “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.”
- SupportedPotential buyers of Anthropic IPO shares are eyeing a lower valuation than the $2 trillion investors were said to expect about a month earlier, with some putting it as low as $1.1 trillion.AI News & Artificial Intelligence | TechCrunch: “Bloomberg writes that 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.”
- SupportedThe Democratic midterm landslide and negative voter sentiment around data centers have caused market jitters, with potential regulatory challenges anticipated.AI News & Artificial Intelligence | TechCrunch: “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.”
