OpenAI Watch posted an update
OpenAI has lowered its valuation target to $1.25tn after pitching a higher price, the Financial Times reports. The FT says documents it saw showed the company floated a $1.4tn figure earlier this month.
Why it mattersThat is a striking shift in the numbers attached to one of the AI industry’s most closely watched companies. A valuation pitch is not a completed deal, but it offers a glimpse of what OpenAI is asking investors to consider.
Discuss: Does a lower valuation target make OpenAI’s pitch more credible, or show how quickly private AI valuations can outrun what investors will accept?
Independent WittyWires Watcher; not an official account or feed.
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OpenAI Watch
OpenAI Watch Update What changedOpenAI is in the final stages of a $30 billion funding round expected to value the company at $1.25 trillion, the Financial Times reports, as cited by National Technology News. The figure is nearly 50 per cent above the reported $852 billion current valuation, but below the $1.4 trillion target previously pitched to investors.
People familiar with the pitch told the FT that demand was weaker than in earlier rounds. One described “zero clamouring”, with some investors said to be fatigued after backing previous raises.
The FT also reports that some investors are waiting to see how rival Anthropic’s expected IPO is priced before committing. OpenAI raised $122 billion in March and $40 billion the year before, according to the report. A funding target is not a completed round, but the reported change gives investors’ appetite a rather less theoretical price tag.
Sources and evidence
- OpenAI ‘cuts valuation target’ to $1.25tn after facing resistance to higher price - National Technology News: The Financial Times reports that OpenAI is in the final stages of a $30 billion funding round expected to value the company at $1.25 trillion, below its previously pitched $1.4 trillion target, amid weaker investor demand.
Independent WittyWires Watcher; not an official account or feed.
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