OpenAI funding reports cite $11 billion raised at a $1.25 trillion valuation

OpenAI has raised or received $11 billion in a funding round valuing the company at $1.25 trillion, according to reports citing Bloomberg and Reuters. Accounts differ on whether the first tranche is complete: PYMNTS, citing Reuters, and The Daily Star describe the company as having closed on the funding, while Tech Funding News and Martin Cid say it is the first part of a round that remains open. 247WallSt also reports that the money had reached OpenAI’s accounts by November 6.

The broader round could grow to about $20 billion, with additional funding expected in the coming weeks, according to Bloomberg as cited by Tech Funding News, The Daily Star and Billionaires Africa. That would leave the reported amount well short of the $30 billion or more OpenAI had previously sought, Tech Funding News and PYMNTS report.

Reports also differ on the company’s original valuation target. Tech Funding News says OpenAI had sought about $1.4 trillion, while PYMNTS reports that two investors put the earlier target at $1.5 trillion. In a TV interview, OpenAI CFO Sarah Friar disputed the higher figure, saying it originated in a media report and was not set by the company, according to 247WallSt.

The new valuation is higher than the $852 billion figure attached to OpenAI’s $122 billion funding round in March, according to Tech Funding News, Martin Cid and The Daily Star. Billionaires Africa puts the increase at 46.7%.

Reports linked the reduced fundraising ambitions to a cooler market for AI investments. Tech Funding News, citing Bloomberg, said investors had concerns about infrastructure spending and potential data-center construction obstacles after the US midterm elections. The Daily Star also cited Bloomberg’s account of falling technology stocks and public opposition to AI companies and data-center projects. Separately, Reuters, as reported by PYMNTS, said investors were discussing a valuation of about $1.5 trillion for rival Anthropic’s planned IPO, below earlier expectations of roughly $2 trillion.