OpenAI Closes $11 Billion First Tranche at $1.25 Trillion Valuation
OpenAI has closed the first $11 billion of a new funding round valuing the ChatGPT maker at $1.25 trillion, well below its original $30 billion target.
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Bloomberg reported that OpenAI has closed the first $11 billion of a new funding round that values the ChatGPT maker at $1.25 trillion, even as it falls well short of what it originally sought. The money was wired to the company as of Friday 6 November, according to people familiar with the matter, and Reuters separately confirmed the figures from its own source.
The $11 billion is only the first portion of a round that has not yet closed; it could total about $20 billion and finish in the coming weeks. The scaled-back target shows cooling enthusiasm for big AI bets after a $2.5 trillion Nasdaq sell-off.
- OpenAI has closed the first $11 billion of a new funding round at a $1.25 trillion valuation, with the money wired to the company as of Friday 6 November.
- The round began with a $30 billion target at a $1.4 trillion valuation, was cut to about $20 billion, and the $1.25 trillion figure is about 47 per cent above the $852 billion set in March.
- The scaled-back target shows cooling enthusiasm for big AI bets after a $2.5 trillion Nasdaq sell-off, and the rest of the round, up to a further $9 billion, is expected to close in the coming weeks.
OpenAI initially set out to raise $30 billion or more at a $1.4 trillion valuation, before scaling back amid a public market rout for AI stocks. Two investors said the company had at one point sought a valuation as high as $1.5 trillion. Chief financial officer Sarah Friar confirmed the $1.25 trillion figure in a television interview but pushed back on reports of a higher starting price.
Investors in the first close include Coatue Management and T. Rowe Price. Others participating in the round include SoftBank, Abu Dhabi’s MGX, Sequoia Capital, Founders Fund and Andreessen Horowitz. OpenAI declined to comment on the fundraising.
The valuation is about 47 per cent above the $852 billion set in March, when OpenAI closed a record $122 billion round anchored by Amazon, Nvidia and SoftBank, with Microsoft also taking part. The step-up shows investors still prize the leading AI labs, but the scaled-back target shows the limits of that enthusiasm.
| Date | What was reported | Amount | Valuation |
|---|---|---|---|
| September | Round first reported | $30 billion or more sought | $1.4 trillion |
| Late October | Target cut | About $20 billion | $1.25 trillion |
| 5 November | Nasdaq sell-off | $2.5 trillion wiped out | — |
| 6 November | First close wired | About $11 billion | $1.25 trillion |
| Coming weeks | Rest of round expected | Up to $9 billion more | To be confirmed |
The funding landed days after a sharp sell-off on Thursday 5 November wiped $2.5 trillion in market value from the Nasdaq, the market’s largest one-day drop since April 2025. Rival Anthropic’s planned initial public offering is also being repriced lower, with some investors valuing it at about $1.5 trillion, below earlier expectations of roughly $2 trillion.
What happens next will be measured in two ways. The remainder of the round, up to a further $9 billion, is expected to close in the coming weeks, and OpenAI is also expected to brief investors on its third-quarter results next week, according to The Information. The final size of the round, and whether the second tranche arrives at the same valuation, will be read as a test of how much appetite remains for the largest AI bets.
For OpenAI, the $11 billion close confirms that investors still value the leading AI labs highly — the $1.25 trillion valuation is about 47 per cent above March — but the scaled-back target shows that enthusiasm now has limits. The test now is the rest of the round: up to a further $9 billion is expected to close in the coming weeks, and whether it arrives at the same valuation will show how much appetite remains for the largest AI bets.
Frequently Asked Questions
How much has OpenAI raised so far in the new round?
OpenAI has closed $11 billion, the first portion of a round that could total about $20 billion. The money was wired to the company as of Friday 6 November.
How does the $1.25 trillion valuation compare with OpenAI’s last round?
It is about 47 per cent above the $852 billion valuation set in March, when OpenAI closed a record $122 billion round.
What happens next?
Up to a further $9 billion is expected to close in the coming weeks. Whether the second tranche arrives at the same valuation will test appetite for the largest AI bets.
