OpenAI has received approximately $11 billion in funding, the opening installment of a new round that values the artificial intelligence company at $1.25 trillion. Bloomberg reported the funding round, citing people familiar with the matter who were not authorized to speak publicly.

The wired funds arrived on Friday. A source described the amount as only the first portion of a deal that could grow to $20 billion in the coming weeks — meaning roughly $9 billion of the potential total still has to be secured.

In a separate report on Friday, The Information said OpenAI plans to update its investors next week after locking in the $11 billion.

A shrinking target

The most striking detail of the round is the money OpenAI did not receive. According to Bloomberg, the company originally sought a $1.4 trillion valuation and hoped to raise $30 billion or more. Those figures ultimately came down: the valuation settled at $1.25 trillion — about $150 billion short of the original ask — and the $20 billion ceiling now under discussion sits well below the initial target.

Bloomberg noted that OpenAI raised $122 billion back in March at an $852 billion valuation, underscoring the scale the company reached in previous fundraising. For a company that has typically led the pack in securing AI investment, the current round appears comparatively small.

Investor caution behind the smaller round

Timing played a significant role. Investor excitement cooled while the round was underway, with growing nervousness over how much cash is being poured into AI hardware. Concerns also emerged over potential roadblocks for new data centers after the US midterms.

According to TechCrunch, a Democratic midterm win and rising public frustration over data centers have unsettled investors, creating fears of stricter rules in the near future.

OpenAI is not the only company feeling the chill from cautious investors. TechCrunch also reported that buyers of shares in rival Anthropic's IPO are aiming for a valuation as low as $1.1 trillion — a substantial drop from the nearly $2 trillion figures being discussed just a month earlier. Taken together, the two deals point to a cooling that extends across the AI sector rather than being confined to a single company.

IPO plans on hold, for now

OpenAI has hinted at going public for some time but keeps delaying the move, relying on private capital instead — which makes rounds like this one the company's principal funding channel. The company's IPO was originally expected sometime next year, though OpenAI President Greg Brockman has indicated that 2027 is a more realistic target for the company to be ready for the stock market.

Source: Cryptopolitan