Report: OpenAI raises just $11 billion of its $30 billion target as investors pull back
OpenAI secured about $11 billion against a $30 billion target, with its valuation landing at $1.25 trillion, short of the $1.4 trillion goal.
According to a report by The Decoder citing the Wall Street Journal, OpenAI has raised less than half of its targeted $30 billion in its latest private funding round, securing approximately $11 billion so far. The company's valuation landed at $1.25 trillion, falling short of the $1.4 trillion it had aimed for.
The shortfall is reportedly driven by fading interest from major institutional investors amid a broader tech sell-off triggered by weak quarterly results from Google, Amazon, and Intel. In response, OpenAI plans to raise up to $20 billion from family offices and high-net-worth individuals. The company is also reportedly planning an initial public offering early next year.
This development contrasts with rival Anthropic, which is pushing to go public as early as November. A strong IPO could leave Anthropic with well over $100 billion in capital, while OpenAI continues to push price cuts and more efficient models to hold its market share.