OpenAI Valuation Hits $1.25 Trillion in New Funding Round
By Google News AI ·
OpenAI’s valuation has reportedly reached $1.25 trillion, $50 billion less than the company had initially targeted.
The valuation came as the artificial intelligence startup closed on new funding of $11 billion, a source familiar with the matter told Reuters Friday (Nov. 6).
That figure represents just part of OpenAI’s initial goal of $30 billion, while the valuation has fallen from the $1.5 trillion level the company had been seeking, said two investors.
Enthusiasm about AI companies has waned in the last month, the report added, with some investors valuing competing AI startup Anthropic’s planned initial public offering (IPO) at about $1.5 trillion, below earlier expectations of roughly $2 trillion.
An earlier Reuters report cited four sources familiar with Anthropic’s investor discussions said potential backers are skeptical that the company can move ahead with its planned roadshow this week and a November listing.
Even if the company and investors can come to an agreement on a valuation, Anthropic could choose to postpone its IPO until the current market turmoil dies down.
Reuters reported Thursday (Nov. 5) that a selloff that day had wiped out $2.5 trillion in market value from Nasdaq and represented the market’s largest one-day drop since April 2025. The report attributed the decline to investor worries that Democratic victories in last week’s midterm elections could bring more scrutiny for AI-related issues like data center construction.
“Democrats are preparing a slate of artificial intelligence bills for when they take control of Congress in January,” PYMNTS wrote last week.
Among them is Rep. Bill Foster’s, D-Ill., Real-Time Regulatory Study Act, which would direct financial regulators to develop, test and publicly release open-source demonstration software.
“With advances in AI creating new cybersecurity threats and financial risks, it’s more important than ever that we modernize the way we monitor the health of our financial institutions,” Foster said in the release.
And Rep. Lori Trahan, D-Mass., plans to pursue a bill requiring independent experts to test AI models against safety standards, while also clarifying when companies can be held liable for harm their systems cause.
A separate report from Bloomberg News quotes a source who says the rest of the round, which could climb to as much as $20 billion in total, is expected to wrap up in the weeks ahead.
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Originally published by Google News AI
