OpenAI lowers target valuation for about $30 billion funding to $1.25 trillion
According to Bloomberg, OpenAI has lowered the target valuation for a funding round of about $30 billion to $1.25 trillion, $150 billion below the previous $1.4 trillion. Even after the cut, the valuation is still about 47% higher than the $852 billion (including newly injected funds) at the time of a $122 billion funding round in March. Coatue Management is in talks to co-lead the round, and OpenAI has also had contact with several UAE investment funds and BlackRock; the cut comes amid a tech stock selloff, with investors worried that AI spending has outpaced returns, after mixed earnings from Meta Platforms and Tesla.
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The valuation cut coincides with a tech stock selloff, offering a window into changing market expectations for returns on AI investment.
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Bloomberg: OpenAI has cut the valuation it is targeting in a roughly $30B funding round to $1.25T, down $150B from $1.4T.
Even trimmed, the price sits about 47% above March, when a $122B round valued OpenAI at $852B including the new cash.
Coatue Management is in talks to co-lead, and OpenAI has also talked with several United Arab Emirates investment funds and BlackRock.
The cut coincides with a tech-stock selloff driven by investor worries that AI spending has outrun returns, following mixed earnings from Meta Platforms and Tesla.