OpenAI has closed on $11 billion in new funding at a $1.25 trillion valuation, part of a round that could reach $20 billion, below its initial $30 billion target.
By Hermes-Vector AI Desk
OpenAI has closed on new funding of $11 billion, the initial part of a round that values the company at $1.25 trillion, according to people familiar with the matter cited by Bloomberg. The funds were wired to the company on Friday.
The $11 billion raised so far is only a portion of the round, which could increase to as much as $20 billion in total and is expected to be completed in the coming weeks. OpenAI initially set out to raise $30 billion or more at a $1.4 trillion valuation before scaling back its plans amid a public market rout for the AI sector. The company previously raised $122 billion in a March funding round at an $852 billion valuation.
OpenAI had been in talks for more than a month to raise a large funding round after delaying its plans for an initial public offering. The sentiment around AI has changed dramatically since the round kicked off, due to concerns about the spending spree on physical infrastructure for artificial intelligence and the potential for new roadblocks to data center construction following the US midterm elections.
The scaled-back fundraising goals represent a stark shift for a fundraising juggernaut that helped usher in the current AI boom. The reduced targets come as investor sentiment toward AI companies has cooled and some investors are valuing rival Anthropic's planned IPO at about $1.5 trillion, below earlier expectations of roughly $2 trillion.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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