Ing. Calogero Bono
OpenAI has raised another $11 billion in a new round that values it at $1.25 trillion, according to Bloomberg and as picked up by TechCrunch and The Verge. The round, however, is not closed yet and remains below the initial target. The news comes as Anthropic prepares for its listing and investors appear more cautious about artificial intelligence. For anyone using these tools at work, understanding how well their providers' finances hold up matters almost as much as understanding the features.
A few terms before we get into the facts. Funding round is a raise of capital from investors in exchange for shares of the company. The valuation is the value assigned to the company at that moment. An IPO is a stock market listing, meaning the first sale of shares to the public. The S-1 is the document a US company files to start an IPO. The bubble risk refers to prices that grow faster than real profits and can then collapse.
How much has OpenAI raised, and at what valuation?
According to TechCrunch, which cites Bloomberg and informed sources, OpenAI has so far raised $11 billion in a round that values the company at $1.25 trillion. The $11 billion is a part of a larger round, not yet closed.
Closing is expected in the coming weeks and the total could reach around $20 billion. HDblog reports the same figures in euros, about 9.85 billion raised and a valuation of about 1,120 billion, and names SoftBank and MGX among the investors.
Why is the round below expectations?
Bloomberg wrote at the end of September that OpenAI wanted to raise 30 billion. The Verge adds that the initial target foresaw a higher valuation, 1.4 trillion.
The context, again according to The Verge, is a drop in tech stocks and a public opinion increasingly hostile to AI companies and data center projects, as shown by the midterm election results. TechCrunch speaks of market tensions and possible future regulatory obstacles.
What is happening with Anthropic and the stock market listing?
Anthropic, a direct rival, filed its S-1 last week to list. According to Bloomberg, reported by TechCrunch, some potential buyers believe its valuation could fall to 1.1 trillion, against the 2 trillion expected about a month earlier.
OpenAI had suggested it wanted to go public this year, then postponed. A listing is expected during the next year.
Will OpenAI go public, and when?
There is no date. Sam Altman has said OpenAI is waiting until it can state with more confidence the safety of its models. He also said, as The Verge reports, "I think it's also pretty bad for the world if OpenAI waits too long to go public".
On model safety we also wrote about GPT-Red, OpenAI's artificial super-hacker.
Limits to know
The figures come from Bloomberg, which cites anonymous sources, and have been picked up by other outlets. TechCrunch asked OpenAI for comment with no reply at the time of publication. The round is not closed, so the total and the investors may still change. The euro conversions are those of HDblog. We do not know whether the lower target depends on the market or on the company's own choices.
What changes for those working with digital tools
For a business or a developer, the risk is depending on a single provider with enormous costs to bear. Prices, limits and service plans can change. It is worth keeping the code that calls AI separate from the rest, as the guide to AI APIs explains. Those starting now can read how to adopt AI without wasting budget.
Our take
A valuation of $1.25 trillion, for a round closed below target, says the money is still there, but it demands proof. In our view the phase of promises is coming to an end. For customers it is good news if it pushes providers to cut costs and explain better what they sell. It is bad news if the books get balanced by raising prices. Our advice is not to tie your business to a single model.
Frequently asked questions
How much has OpenAI raised in its latest round?
About $11 billion so far, according to Bloomberg. The round is not closed and could reach around $20 billion.
How much is OpenAI worth now?
$1.25 trillion according to the new round. In March, The Verge reports, the valuation was $852 billion after a raise of $122 billion.
Is OpenAI listed on the stock market?
No. It had hinted at a listing this year, then postponed. An IPO is expected next year.
What is Anthropic doing?
It has filed an S-1 to list. Some potential buyers, according to Bloomberg, estimate a valuation as low as $1.1 trillion, against $2 trillion expected.
Why are investors more cautious?
Because of the drop in tech stocks and hostility toward data centers, according to The Verge and TechCrunch. HDblog adds chip and energy costs and fears of a bubble.
What to watch in the coming weeks on the round and the stock market
The next signals are the closing of the round and Anthropic's listing. They will show how much the market still believes in AI.
- Check whether the OpenAI round closes near $20 billion or well below.
- Follow the outcome of Anthropic's IPO and its final valuation.
- Review the contracts and price lists of the AI services you use, looking for price changes.
