OpenAI raises an additional $11 billion at a $1.25 trillion valuation

Summary

OpenAI has raised $11 billion so far in an unfinished funding round that values the company at $1.25 trillion. The round is expected to reach approximately $20 billion in total, falling well short of the $30 billion target reported in September. This news comes hours after Bloomberg reported that Anthropic's IPO investors are aiming to lower its valuation to $1.1 trillion, a sharp drop from the $2 trillion figure expected just a month ago.

Why it matters

The simultaneous decline in valuations for OpenAI and Anthropic signals a broader cooling in AI valuations. This trend is deepening amid political uncertainty following the midterm elections and voter backlash against data center construction. If the two largest private players in the AI market are trading below their previous targets, serious questions arise about the sustainability of the capital-intensive scaling race under the current regulatory and market climate.

Highlights

• OpenAI's round is still open and may total around $20 billion, significantly below the $30 billion sought in September.
• Anthropic's IPO investors are reportedly seeking a valuation of around $1.1 trillion, compared to the $2 trillion expected a month ago.
• Democrats' landslide victory in the midterms and voter backlash against data centers are shaking the AI investment market.

Critical take

The article relies entirely on Bloomberg's 'sources familiar with the matter,' and OpenAI has not confirmed anything. Therefore, the $1.25 trillion figure remains unverified. Furthermore, the text does not explain why the round dropped from $30 billion to approximately $20 billion, offering only a superficial reference to market anxiety. This leaves the primary reason for the valuation decline open to speculation.