OpenAI reportedly closes $11 billion funding tranche at $1.25 trillion valuation
Bloomberg and Reuters report that OpenAI closed an initial $11 billion at a $1.25 trillion valuation, with more funding possible.
By Dominic Okoye · Staff Writer
· 3 min read
OpenAI’s $11 billion funding valuation has reportedly reached an initial close: Bloomberg and Reuters said the company received or closed roughly $11 billion at a $1.25 trillion valuation on Nov. 6. The reported financing would follow OpenAI’s $122 billion March round at an $852 billion valuation, according to Bloomberg. OpenAI declined to comment to Bloomberg, leaving the terms unconfirmed by the company.
The distinction is material. Bloomberg, citing people familiar with the matter, reported that the money had been wired by Friday and that the $11 billion was the first part of a round that could total as much as $20 billion in the coming weeks. Reuters separately reported the initial close, citing a person familiar with the matter.
The reports provide no company-confirmed use of proceeds, final closing date or complete investor roster. A $1.25 trillion funding-round valuation is a negotiated price for the financing, rather than a measure of a private company’s common-stock value. For the mechanics behind that distinction, see how startup valuations and funding terms work.
Has OpenAI confirmed its reported $11 billion funding round?
No. Bloomberg reported that OpenAI declined to comment. The funding amount, valuation, prospective total and investor participation therefore rest on reporting from people who were not identified because the information was not public.
The reported close also updates an earlier account of the fundraising process. On Oct. 30, The Wall Street Journal reported that OpenAI had secured roughly $11 billion in commitments, less than half of an initial $30 billion target, at the same $1.25 trillion valuation. Bloomberg’s Nov. 6 report described the funds as wired, which would move that portion from commitments to a reported close.
Bloomberg said OpenAI initially sought to raise $30 billion or more at a $1.4 trillion valuation, before reducing its plans amid a public-market selloff in AI stocks. If the round reaches the reported $20 billion ceiling, it would still be at least one-third below that initially reported $30 billion-plus target. The Journal attributed weaker fundraising interest to market concerns around AI. Reuters cited two investors who said the original target was up to $30 billion and that OpenAI had initially sought a $1.5 trillion valuation, a different figure from the $1.4 trillion target reported by Bloomberg and the Journal.
Which investors were reported to be in the round?
Bloomberg’s sources named Coatue Management and T. Rowe Price as contributors to the first close. They also identified SoftBank, Sequoia Capital, Founders Fund, Andreessen Horowitz and a syndicate of United Arab Emirates backers as participants in the broader round. Reuters reported, citing investors, that SoftBank and MGX participated.
Bloomberg said SoftBank, Founders Fund and T. Rowe Price declined comment. Coatue, Andreessen Horowitz and Sequoia did not immediately respond to its requests.
This story draws on original reporting from SiliconANGLE.
