OpenAI Seeks $30 Billion Funding at $1.25 Trillion Valuation, Down from Earlier Target

OpenAI is seeking to raise approximately $30 billion in new funding at a valuation of nearly $1.25 trillion, a target that has been lowered from earlier discussions.

According to the Financial Times on Friday, this proposed valuation is nearly 50% higher than OpenAI's current valuation of $852 billion, but remains below the $1.4 trillion figure previously pitched to potential investors during funding talks.

The lowered valuation target comes amid a selloff in tech stocks and widespread skepticism over the returns and financing costs of AI infrastructure.

Coatue and a UAE fund have held discussions to lead this funding round. The report noted that OpenAI has set a commitment deadline of October 30, and the final amount raised could fall below $30 billion if investor demand is insufficient.

Morgan Stanley and San Francisco-based tech investor Dragoneer had pitched the offering to private wealth clients at a higher valuation. Demand is reportedly weaker compared to OpenAI's earlier fundraising efforts.

A source told the Financial Times: "Every previous appearance triggered a frenzy. This time it's a bit of a cold reception."

Some investors also told the newspaper they are waiting for Anthropic's expected initial public offering pricing later this year before deciding whether to invest in its competitor.

The report added that OpenAI is seeking the funds as a bridge to a potential public listing in the first half of 2027, though no specific date has been set.

OpenAI did not immediately respond to a request for comment.

OpenAI Rules Out 2026 IPO

OpenAI CEO Sam Altman earlier ruled out an IPO in 2026, citing unresolved AI safety and alignment issues. He said: "Going public now would be an unwise time, and we feel no pressure to do so."

Last month, reports indicated that OpenAI was seeking nearly $30 billion in funding at a valuation of approximately $1.4 trillion while delaying its IPO. The company intended to use the round as a bridge to secure additional capital, citing investor demand as one of the driving factors.

Meanwhile, OpenAI's annualized revenue has surpassed $40 billion, nearly doubling since the end of 2025, with President Greg Brockman stating that the revenue run rate surged by more than 20% in July alone.