OpenAI shifts value to US$1.25 trillion as funding talks finalise
OpenAI's estimated value has dropped from US$1.4 trillion to US$1.25 trillion. The company expects investors to confirm their funding commitments by the end of next week.
- OpenAI has been talking with several investment funds from the United Arab Emirates and other companies, including BlackRock. PHOTO: REUTERS
[NEW YORK] OpenAI, the company behind ChatGPT, is trying to raise about US$30 billion from investors in a new round of funding. As the talks reach their final stages, the company is now aiming for a value of US$1.25 trillion, according to people who know about the discussions.
OpenAI has lowered the value being discussed by US$150 billion, from US$1.4 trillion. This information came from people involved in the talks who asked not to be named because the details are private. They said the discussions are still happening, so the details could change.
OpenAI last raised US$122 billion from investors in March. At that time, the company was valued at US$852 billion, including the new money it raised.
Coatue Management is discussing whether to help lead this new funding round, according to the people familiar with the talks. OpenAI has also been talking with several investment funds from the United Arab Emirates and other companies, including BlackRock, as Bloomberg reported earlier.
OpenAI said it would not comment. Coatue did not immediately answer a request for comment.
OpenAI expects investors to confirm how much money they will provide by the end of next week, according to one person.
CNBC had already reported the US$1.25 trillion valuation.
Technology company shares have fallen this week. Companies including Meta Platforms and Tesla reported mixed financial results for the quarter. This made investors worry that companies might be spending too much money on artificial intelligence.
Many investors are also watching OpenAI's competitor, Anthropic. They want to see how investors react when Anthropic starts selling shares to the public for the first time, in what is called an initial public offering, or IPO. This is expected to happen in November.
OpenAI has delayed its own plans to sell shares to the public until 2027. The company said it wants to focus on making artificial intelligence safer. BLOOMBERG