OpenAI has secured approximately $11bn in new funding, placing the company’s valuation at $1.25tn, reported Bloomberg, citing sources familiar with the process.
The funding, reportedly transferred to OpenAI, marks the completion of the first phase of a larger round that could reach up to $20bn in the coming weeks, according to one person.
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The AI company began fundraising discussions more than a month ago, after deciding to postpone its initial public offering (IPO) plans.
Previous reports indicated that OpenAI had originally targeted a $30bn raise at a $1.4tn valuation, but revised its ambitions as market challenges affected the AI sector.
Investors involved in this tranche include Coatue Management and T. Rowe Price, as confirmed by individuals with knowledge of the transaction.
Other participants reportedly include SoftBank Group, Founders Fund, Sequoia Capital, and Andreessen Horowitz, with a group of backers from the United Arab Emirates also joining the round.
OpenAI is reportedly working with investment banks to raise further capital from high-net-worth individuals and retail investors, the sources added.
The revised fundraising target comes amid broader concerns over heavy investment in AI infrastructure and uncertainty surrounding data centre construction, particularly in light of the recent US midterm elections.
The reassessment of OpenAI’s funding goals reflects changing sentiment in the sector.
At the same time, investors are reportedly reassessing the valuation of competitor Anthropic ahead of its planned IPO. Potential buyers are debating a figure between $1.2tn and $1.3tn, down from an earlier target of $1.5tn.
OpenAI’s most recent previous funding round took place in March, raising $122bn at an $852bn valuation.
Earlier this month, OpenAI released GPT-6 Cyber, a new AI model designed to help security researchers identify and address software vulnerabilities. The company has assigned the model a “Critical” cybersecurity rating under its own safety framework.
Initial access to GPT-6 Cyber is limited to a select group of vetted Daybreak Red customers, who can use the model through the API and Codex platforms, OpenAI stated. The company intends to expand availability to a wider user base in the near future.
