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According to Bloomberg, OpenAI has lowered the target valuation for its roughly $30 billion funding round to $1.25 trillion, $150 billion below the previous target of $1.4 trillion. The report said that even after the reduction, 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 been in contact with several UAE investment funds and BlackRock. The report noted that the reduction comes as tech stocks sell off and investors worry that AI spending is outpacing returns. There has been no further public progress on the funding round so far.
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Oct 23
Rohan Paul
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.