OpenAI raises $11 billion at a $1.25 trillion valuation, about $150 billion below its initial pitch

OpenAI has taken the first $11 billion of its new funding round at a valuation of $1.25 trillion, about $150 billion below its initial pitch³. The company had earlier sought more than $30 billion at a valuation of roughly $1.4 trillion⁶. The amount closed so far covers about 37% of that original target⁵.

The financing could reach about $20 billion in total, which would still fall short of the earlier goal⁶. SoftBank and Abu Dhabi’s MGX took part in the round⁵. SoftBank has discussed investing hundreds of millions of dollars in it⁸.

OpenAI President Greg Brockman has indicated that 2027 is a more realistic target for the company to be ready for a stock market listing⁴. OpenAI is therefore raising private money at a reduced price rather than turning to public markets in the near term^3,4.

Why it matters to investors

Both OpenAI and its main rival, Anthropic, are trying to complete substantial new financing deals this week at lower-than-expected valuations after the recent market rout¹. The gap between the $1.4 trillion ask and the $1.25 trillion price puts a figure on how far the selloff in AI shares has reached into private funding^3,6.

Investors are also reassessing the valuation of Anthropic ahead of its planned initial public offering⁷. Discussions over Anthropic’s valuation now point to a range starting at roughly $1.2 trillion². Anthropic is the main rival to OpenAI, and the two companies’ fundraising has become a gauge of private-market appetite for AI after the rout^1,2.

The round also shows which backers are still writing cheques at the lower price. SoftBank and MGX, an Abu Dhabi investor, are among those that took part⁵. SoftBank has also discussed putting hundreds of millions of dollars into the round, a sign that at least some large investors remain willing to commit at the new valuation^5,8.

What to watch

The final size of the OpenAI round, which could reach about $20 billion, is the next marker, set against the earlier target of more than $30 billion⁶. A smaller round at a lower price would leave OpenAI with less new capital than it first sought^3,6.

For Anthropic, the valuation it secures in its own financing this week and the reassessment by prospective buyers ahead of its planned listing are the markers to follow^1,7. For OpenAI, Brockman’s 2027 timeline means any stock market listing remains some way off⁴.