OpenAI raises $11 billion at $1.25 trillion valuation as AI investor sentiment cools
OpenAI has secured $11 billion in fresh funding at a valuation of $1.25 trillion, marking the first portion of a larger investment round as the artificial intelligence company continues to finance its expansion. The funding was completed on Friday, November 6, according to a person familiar with the matter. Investors including SoftBank and Abu Dhabi-based investment firm MGX participated in the round.
The $11 billion raised so far represents a significant reduction from OpenAI's original fundraising ambitions. The company had initially sought to secure as much as $30 billion at a valuation of approximately $1.4 trillion to $1.5 trillion.
Funding Target Scaled Back
OpenAI is now looking to raise up to $20 billion in the broader funding round, with the remaining investment expected to arrive in the coming weeks, according to Bloomberg. The revised target reflects changing conditions in the AI investment market.
Technology stocks have faced significant selling pressure as investors question the enormous spending commitments required to build AI infrastructure and whether the resulting commercial returns will justify the costs. The company's valuation has also been adjusted. At $1.25 trillion, OpenAI is valued below the $1.5 trillion figure it had previously pursued.
The funding nevertheless represents one of the largest private capital raises in the technology industry, giving OpenAI additional resources to develop its AI models, expand its computing infrastructure and compete with rivals.
OpenAI's Valuation Continues to Climb
Despite the reduced fundraising target, OpenAI's latest valuation represents a substantial increase from its previous financing round. In March 2026, the company raised approximately $122 billion at a valuation of $852 billion. The latest $1.25 trillion valuation represents an increase of nearly 47% in roughly eight months.
The company is also facing competition for investor capital from Anthropic, the developer of Claude, which is preparing for a potential initial public offering. However, expectations surrounding Anthropic's valuation have also reportedly cooled as investors reassess the AI market.
IPO Plans Remain in Focus
OpenAI has been preparing for a possible public listing, with reports suggesting the company could pursue an IPO in 2027. However, the company has not confirmed a definitive listing timeline. The latest fundraising provides another source of capital as OpenAI continues investing in data centres, computing capacity and model development.
Meanwhile, the broader question for investors is whether the AI industry's rapid growth can translate into sustainable profits. With infrastructure costs rising and public-market valuations under pressure, OpenAI's ability to demonstrate strong commercial returns could become increasingly important as it approaches a potential IPO.
