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OpenAI has lowered its target for its latest funding round. According to Bloomberg, the size of this round has been reduced from $30 billion to about $20 billion, a 33% decrease, and the valuation target has been cut from $1.4 trillion to $1.25 trillion. According to the Financial Times, investors first objected to the price in late October and then reduced the amount they were willing to invest. A report by East Money also said that the funding target was lowered from $30 billion to $20 billion, a cut of $10 billion, and the valuation target shrank by $150 billion; people familiar with the matter said some investors reduced their subscription amounts, and the actual amount raised in the first closing is expected to be less than $20 billion. MGX is expected to become the largest participant, and Founders Fund, Coatue, Sequoia Capital, Andreessen Horowitz and SoftBank also plan to participate. There is currently no further progress.
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OpenAI's target valuation lowered to $1.25 trillion, funding target cut to $20 billionDevelopments
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OpenAI lowers its latest funding round target by $10 billion
Source:Rohan Paul
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Nov 1
East Money
OpenAI's target valuation lowered to $1.25 trillion, funding target cut to $20 billion
OpenAI has lowered the target valuation for this funding round from $1.4 trillion to $1.25 trillion, a reduction of $150 billion, or about 10.7%; the funding target has also been cut from $30 billion to $20 billion, a reduction of $10 billion. People familiar with the matter said that because some investors reduced their subscription amounts, the actual funds raised in the first closing are expected to be less than $20 billion. MGX, part of a consortium of UAE investment institutions, is expected to become the largest participant, while Founders Fund, Coatue, Sequoia Capital, Andreessen Horowitz and SoftBank also plan to participate.
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TechCrunch AI
OpenAI Reportedly Lowers New Funding Target to $20 Billion
According to the Financial Times, OpenAI has lowered its new funding target from the $30 billion previously reported to $20 billion, with the first closing amount expected to be even lower. The round is led by Emirati investors, and a subsequent retail offering to wealthy individuals could bring the total to the $20 billion target; The Wall Street Journal says the company has so far raised $11 billion, with some large investors responding coolly. The report attributes the chilly reception for the funding partly to poor timing, as Wall Street investors grow cautious about heavy spending on AI infrastructure, triggering a sharp selloff in tech stocks.
Oct 31
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OpenAI's latest funding target shrinks by $10 billion, plans to raise $20 billion at a valuation of about $1.25 trillion
According to the Financial Times, OpenAI has lowered its latest funding round target from $30 billion by about $10 billion and is now seeking to raise about $20 billion at a valuation of about $1.25 trillion. The company previously planned to raise $30 billion at a valuation of $1.4 trillion and positioned the round as the "last chance" for investors to buy in before next year's IPO. People familiar with the matter said that because some investors reduced their subscription amounts, the first closing amount may be less than $20 billion; a consortium led by MGX is expected to be the largest contributor, while Sequoia Capital, Founders Fund, Coatue, Andreessen Horowitz and SoftBank also plan to participate.
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The Decoder
OpenAI's latest funding round raised only $11 billion, below its $30 billion target
OpenAI's latest funding round has so far raised only about $11 billion, less than half of its $30 billion target, with a valuation of $1.25 trillion, below its expected $1.4 trillion. According to The Wall Street Journal, the shortfall stems from waning interest among large investors, against the backdrop of a tech stock selloff triggered by weak quarterly results from Google, Amazon and Intel. OpenAI plans to turn to family offices and high-net-worth individuals to raise up to another $20 billion, and is reportedly planning to launch an IPO early next year; rival Anthropic has recently seen faster revenue growth and could go public as early as November.
Rohan Paul
OpenAI's funding round shrinks from $30 billion to about $20 billion, valuation target lowered to $1.25 trillion
According to Bloomberg, OpenAI's current funding round has been reduced from $30 billion to about $20 billion, a 33% decrease, while the valuation target has been lowered from $1.4 trillion to $1.25 trillion, a reduction of only about 11%. According to the Financial Times, investors first objected to the price in late October and then cut the amount they were willing to invest. Even at $1.25 trillion before the new capital comes in, OpenAI's valuation is still about 47% higher than the $852 billion at the time of its $122 billion funding round in March. This pullback coincides with a 3.5% decline in the Nasdaq 100 index, as OpenAI's private fundraising becomes more closely tied to public-market sentiment on AI spending.
East MoneySelected
Anthropic Files IPO Registration Statement, a Full Comparison with OpenAI on Valuation, Revenue and Compute
On October 26, Anthropic publicly filed its IPO registration statement with the SEC, planning to list on Nasdaq under the ticker ANT, with the offering price and fundraising size not yet determined. The prospectus shows second-quarter revenue of $11.555 billion, exceeding OpenAI's roughly $6.7 billion for the same period, and quarterly operating profit of $974 million. The article compares the two companies across four dimensions—valuation, revenue, profitability and compute—and notes that Anthropic's IPO pricing could serve as a reference for valuing OpenAI and other unlisted AI companies.
East Money
OpenAI Cuts Latest Funding Round Target by $10 Billion
According to a report by the UK's Financial Times, OpenAI has cut the target for its latest funding round by $10 billion and now plans to raise about $20 billion at a valuation of $1.25 trillion, down from last month's plan to raise $30 billion. The adjustment comes as tech stocks fell sharply and concerns grew over the scale of AI investment and the pace of returns; that day the Nasdaq Composite fell 2.86% and the Philadelphia Semiconductor Index dropped 7.20%.
Sina Tech
OpenAI lowers fundraising target by $10 billion, valuation drops to $1.25 trillion
OpenAI has lowered its latest funding round target from $30 billion to about $20 billion, and its valuation from $1.4 trillion to $1.25 trillion. A sell-off in AI stocks in public markets, with the Nasdaq 100 falling 3.5% on Friday, plus rival Anthropic's upcoming listing next month, have put pressure on this funding round. A consortium of several UAE investment institutions (including MGX) will be the largest investor, and OpenAI will gain the option to lease newly built computing resources in the region; Founders Fund, Coatue, Sequoia Capital, Andreessen Horowitz and SoftBank also plan to participate.
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