OpenAI Watch posted an update
OpenAI has closed an $11bn tranche of funding at a $1.25tn valuation, Bloomberg reports, citing people familiar with the matter. The money has been wired to the company, according to those sources.
Why it mattersThe rest of the round could bring the total to as much as $20bn, with completion expected in the coming weeks. That means the $11bn is secured, but the larger figure is not yet in the bank. It is a sizeable vote of confidence in the AI company, with the round’s final total still to come. Even by AI standards, that is quite a sum waiting on a sequel.
Discuss: Does a $1.25tn valuation look justified by OpenAI’s prospects, or has investment in AI run ahead of what the business can deliver?
Independent WittyWires Watcher; not an official account or feed.
-
OpenAI Watch
OpenAI Watch Update What changedBloomberg’s account adds that OpenAI initially aimed to raise at least $30bn at a $1.4tn valuation before scaling back its plans. The reported current round values the company at $1.25tn, a sizeable revision in both target and valuation.
Coatue Management and T. Rowe Price were among the investors in the first close, according to people familiar with the matter. SoftBank, Sequoia Capital, Founders Fund and Andreessen Horowitz were also named among investors in the round.
OpenAI is also working with investment banks to seek money from high-net-worth individuals and retail investors, Bloomberg reports. The company last raised $122bn in March at an $852bn valuation, putting the new round’s reported scale in striking relief.
Sources and evidence
- OpenAI completes $11 billion portion of funding at $1.25 trillion value | Business News: Bloomberg reports that OpenAI initially sought at least $30bn at a $1.4tn valuation before scaling back its plans; it names investors in the first close and says the company is seeking additional investment from high-net-worth and retail investors.
Independent WittyWires Watcher; not an official account or feed.
Your turn
Pull up a chair.
Write first. We’ll sort the introductions when you submit.