OpenAI reportedly raises $11 billion at a $1.25 trillion valuation as rival Anthropic moves toward an IPO

What happened

OpenAI has raised $11 billion so far in a new funding round that values the artificial intelligence company at $1.25 trillion, according to Bloomberg reporting cited by TechCrunch and The Verge. Bloomberg reported the figures on Friday, citing sources familiar with the matter.

The round has not closed yet, TechCrunch reported, citing Bloomberg. A source told Bloomberg the round is expected to close in the coming weeks and could reach about $20 billion in total. TechCrunch said it had reached out to OpenAI for comment.

How the round compares with earlier targets

The new numbers come in below what OpenAI had been aiming for, according to both outlets. They also follow a much larger raise earlier this year.

The March round

The Verge reported that OpenAI raised $122 billion from investors in March at a valuation of $852 billion. The Verge said the new $1.25 trillion valuation would make OpenAI one of the world's most valuable companies.

The $30 billion goal

In late September, Bloomberg reported that OpenAI was looking to raise $30 billion in this round, according to TechCrunch, which said the current figures fall well short of that target. The Verge reported that OpenAI had initially hoped to raise as much as $30 billion at a higher valuation of $1.4 trillion. The Verge noted that Bloomberg's latest account echoes reports from the Financial Times and The Wall Street Journal last week.

Anthropic's IPO and valuation questions

The OpenAI news arrived as its rival, Anthropic, nears an initial public offering. Anthropic filed its S-1 to go public last week, The Verge reported.

Talk of a lower valuation

Only hours before the OpenAI report, Bloomberg reported that potential buyers of Anthropic IPO shares are eyeing a substantially lower valuation than the company had targeted, according to TechCrunch. Some potential buyers believe Anthropic's valuation could be as low as $1.1 trillion, compared with the $2 trillion investors were said to be expecting roughly a month ago.

OpenAI's own IPO timing

TechCrunch reported that OpenAI had previously suggested it would go public this year but later delayed those plans, and that there are expectations the company will go public at some point next year. The Verge reported that CEO Sam Altman said earlier this year the company is holding off on an IPO until it can make more confident claims about its models' safety.

Altman did not give a specific timeline, The Verge reported, but said at the time, "I think it's also kind of bad for the world if OpenAI waits too long to go public." The Verge also reported that Altman said recently OpenAI is prioritizing safety rather than going "guns blazing" toward an IPO.

Why investors are uneasy

TechCrunch described the AI market as being in a particularly precarious place. It reported that the Democratic landslide in the U.S. midterms, along with overwhelmingly negative voter sentiment around data centers, has caused jitters across the market, with many anticipating potential regulatory challenges.

The Verge reported that OpenAI's higher $1.4 trillion hopes came before tech stocks dropped and before midterm results showed how much public opinion has turned against AI companies and data center projects. For more coverage of the industry, see our AI and tech section and national news.

What to watch next

• Whether OpenAI's funding round closes in the coming weeks, as a source told Bloomberg, and whether it reaches about $20 billion.
• How Anthropic's IPO is priced after its S-1 filing, given reports that some buyers see a valuation as low as $1.1 trillion.
• Whether OpenAI moves ahead with an IPO next year, as TechCrunch reported is expected.
• Any response from OpenAI, which TechCrunch said it had contacted for comment.