Timeline
- 8.0
OpenAI's funding target drops by $10 billion, valuation cut to $1.25 trillion in tandem
OpenAI has cut the target size of its latest funding round by $10 billion and is now seeking roughly $20 billion at a $1.25 trillion valuation, down from an earlier plan of $30 billion at $1.4 trillion, according to the Financial Times. The investor subscription deadline was last Friday, and people familiar said the first close is expected to come in below the $20 billion target because some investors have reduced their commitments. The downward revision at the world's most closely watched AI lab indicates investors are trimming commitments to AI valuations, as described by the FT, at a time when listed AI-related stocks are being sold off. OpenAI had justified the earlier valuation of $1.4 trillion — nearly double a prior $852 billion mark — by pointing to rapid revenue growth since July, and had pitched the round as investors' last chance to buy in before a planned IPO next year. The FT report says the first close will fall short of the $20 billion target.
- 8.5
OpenAI Nears Close of New Funding Round, Seeking Up to $30 Billion at a $1.25 Trillion Pre-Money Valuation
OpenAI is nearing the close of a new funding round in which it is seeking to raise up to $30 billion at a $1.25 trillion pre-money valuation, with investors from the UAE co-leading alongside investment firm Coatue, according to CNBC-sourced reports. OpenAI told investors on Thursday that it aims to sign the agreements by the end of next week, though the final size of the round is still being determined. Should the round price OpenAI above a $1 trillion valuation, it would become the most highly valued private company on record. The company is positioning the raise as an "opportunistic bridge financing" ahead of a possible initial public offering. The $1.25 trillion figure is a pre-money valuation, meaning it excludes the new capital being raised. OpenAI also is negotiating a commercial agreement to obtain additional computing resources from the UAE, and CFO Sarah Friar has previously told employees the company could list in 2027.