Key Takeaways
- • OpenAI has closed $11 billion in new funding, the initial tranche of a round that values the company at $1.25 trillion, according to a source familiar with the matter cited by Reuters.
- • The $11 billion raised so far is only a portion of OpenAI's original target of up to $30 billion, and the valuation has come down from the $1.5 trillion level the company initially sought, per two investors.
- • SoftBank and MGX participated in the funding round, according to investors cited by Reuters.
- • Investor sentiment toward AI companies has cooled over the past month, with some investors valuing Anthropic's planned IPO at about $1.5 trillion, below earlier expectations of roughly $2 trillion.
Summary
OpenAI has closed on new funding of $11 billion, the first part of a larger round that values the company at $1.25 trillion, a source familiar with the matter told Reuters on Friday. Bloomberg News reported the funding earlier the same day.
The $11 billion raised so far represents only a portion of OpenAI's original fundraising target of up to $30 billion. Two investors said the company's valuation has also come down from the $1.5 trillion level it had initially sought, indicating that the terms of the round were revised downward during the process.
SoftBank and MGX participated in the funding, according to the investors. The round's structure and remaining tranches were not detailed in the report.
The report places the financing in the context of a cooler market for AI companies. Sentiment has weakened over the last month, and some investors are now valuing Anthropic's planned IPO at about $1.5 trillion, below earlier expectations of roughly $2 trillion. The gap suggests that investors are applying more conservative valuations to frontier AI developers than they were earlier in the cycle.
The $11 billion raised so far represents only a portion of OpenAI's original fundraising target of up to $30 billion. Two investors said the company's valuation has also come down from the $1.5 trillion level it had initially sought, indicating that the terms of the round were revised downward during the process.
SoftBank and MGX participated in the funding, according to the investors. The round's structure and remaining tranches were not detailed in the report.
The report places the financing in the context of a cooler market for AI companies. Sentiment has weakened over the last month, and some investors are now valuing Anthropic's planned IPO at about $1.5 trillion, below earlier expectations of roughly $2 trillion. The gap suggests that investors are applying more conservative valuations to frontier AI developers than they were earlier in the cycle.
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