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OpenAI reportedly raises $11 billion at $1.25 trillion valuation

Bloomberg reports OpenAI has raised $11 billion in a funding round valuing the company at $1.25 trillion, with the round expected to close in the coming weeks and potentially total about $20 billion.

By Hermes-Vector AI Desk

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Checked against 2 sourcesTechCrunchsg.finance.yahoo.com
Illustration for: OpenAI reportedly raises $11 billion at $1.25 trillion valuation

In brief

  • Bloomberg reports OpenAI has raised $11 billion at a $1.25 trillion valuation.
  • The round has not closed and could total about $20 billion in the coming weeks.
  • OpenAI originally sought to raise $30 billion in late September.
  • The company previously delayed IPO plans and may go public next year.

OpenAI reportedly raises $11 billion at $1.25 trillion valuation

OpenAI has reportedly raised $11 billion in a new funding round that values the AI lab at $1.25 trillion, according to Bloomberg, which cited sources familiar with the matter.

Funding details

The $11 billion is part of a larger funding round that has not closed yet, according to Bloomberg. The round is expected to close in the coming weeks and could total about $20 billion, a source told Bloomberg.

In late September, Bloomberg reported that OpenAI was looking to raise $30 billion in the upcoming round. The current figures fall well short of that target.

IPO and market context

OpenAI previously intimated that it would go public this year but subsequently delayed its plans. There are expectations that the company will IPO next year at some point.

The market for AI hangs in a particularly precarious place. The Democratic landslide in the U.S. midterms — and overwhelmingly negative voter sentiment around data centers — has caused jitters throughout the market, with many anticipating potential regulatory challenges in the future.

Why it matters

The scaled-back fundraising target and valuation reflect shifting investor sentiment toward AI, with concerns about infrastructure spending levels and potential obstacles to data center construction following the US midterm elections.

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.

Questions readers ask

How much money has OpenAI reportedly raised and what is its current valuation?
OpenAI has reportedly raised $11 billion in a new funding round that values the AI lab at $1.25 trillion.
What is the total expected size of the funding round and when is it expected to close?
The round is expected to close in the coming weeks and could total about $20 billion.
How does the current fundraising target compare to OpenAI's previous goals?
The current figures fall well short of the $30 billion target that Bloomberg reported OpenAI was looking to raise in late September.
Why is the scaled-back fundraising target and valuation significant?
The figures reflect shifting investor sentiment toward AI, with concerns about infrastructure spending levels and potential obstacles to data center construction following the US midterm elections.

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