OpenAI said to cut valuation target to $1.25T

OpenAI has lowered its target valuation for its latest funding round. Earlier this month, the company told investors it was aiming for a valuation of $1.4 trillion. It is now seeking to raise $30 billion before going public, the Financial Times reported, citing people familiar with the matter and documents it had seen.

According to the report, OpenAI is close to finalizing a deal that would value the company at $1.25 trillion. This would be nearly 50% higher than its current valuation of $852 billion. However, the new target is lower than the $1.4 trillion valuation that Morgan Stanley and technology investment fund Dragoneer had presented to the bank's private wealth clients before the funding round, the report added.

"There has been zero clamouring," one person familiar with the process led by Morgan Stanley told the newspaper. "All the prior times [OpenAI] have been on there's been a frenzy. This time is a bit of a thud," the person added.