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OpenAI receives $11 billion in a round that values it at $1.25 trillion, Bloomberg reports
IA en un minuto newsroom · Editor: Jon Elgezabal
In 30 seconds
OpenAI took in roughly $11 billion on November 6 as the first tranche of a round that puts the company's value at $1.25 trillion, with Coatue Management among the backers, according to Bloomberg. Its initial aim was $30 billion or more and a $1.4 trillion valuation. With the part still to close, the total could reach $20 billion.
OpenAI now has the first tranche of its new funding round, though on worse terms than it was initially after.
Bloomberg reported on Friday, November 6, that the company had received about $11 billion that same day, the first part of a round that values it at $1.25 trillion. The agency cites people familiar with the matter who asked not to be named, and it names Coatue Management and T. Rowe Price among the investors in this first close. OpenAI declined to comment to Bloomberg, as reported by Infobae.
According to 24/7 Wall St., that number is the valuation before the new money comes in, and OpenAI's chief financial officer, Sarah Friar, confirmed it in a television interview.
The original goal was bigger. According to Bloomberg, OpenAI hoped to bring in $30 billion or more, with the company valued at $1.4 trillion, and it scaled back those plans as AI stocks fell on public markets. With the rest of the round, the total could climb to $20 billion. That second part has not closed yet; one of the agency's sources expects it to be completed in the coming weeks. The company has spent more than a month negotiating this funding, after putting off its plans to go public.
The Wall Street Journal had already reported on October 31 that OpenAI had commitments of about $11 billion and had lowered its goal to a maximum of $20 billion. In March, the company raised $122 billion at an $852 billion valuation, according to Investing.com as cited by Infobae; the new valuation is roughly 47% higher.
Why it matters · analysis and opinion
Money keeps flowing to the big AI labs, but investors are now negotiating the price. OpenAI accepting a lower valuation and a smaller amount than it sought signals that appetite is not unlimited, especially when the sector's shares are falling and doubts are growing about whether so much AI spending is sustainable. For the rest of the market it is a benchmark: if the leader adjusts its expectations, smaller companies looking for funding will find it harder to justify high valuations without the revenue to back them. It remains to be seen whether the second part of the round closes on the expected terms and who takes it up. For companies that rely on its tools, nothing changes in the short term: the company still has the money to keep developing its products.
Source: Infobae · Written with the help of AI: how we make the news
