OpenAI lowers valuation target, raises up to $30 billion
decoder ·
OpenAI is pursuing a new funding round of up to $30 billion while significantly lowering its valuation target from an initial $1.4 trillion to $1.25 trillion. This adjustment comes as investor demand appears weaker than in previous fundraising efforts, with some backers experiencing financial strain from earlier heavy investments. The round is being led by UAE investors and the firm Coatue, serving as a strategic bridge toward a potential initial public offering. Although OpenAI filed an IPO prospectus with the SEC in June, CEO Sam Altman has indicated that current market conditions are unfavorable for going public immediately. CFO Sarah Friar previously stated internally that the company aims to be publicly traded by 2027. Concurrently, OpenAI is negotiating commercial deals to secure additional compute capacity through the UAE. Meanwhile, competitor Anthropic is also preparing for an IPO, targeting a higher valuation range between $1.5 and $2 trillion.
decoder