OpenAI Reduces Target Valuation for Funding to $1.25 Trillion

OpenAI has lowered its target valuation for its latest funding round to $1.25 trillion, reports the Financial Times. This figure is below the previously stated $1.4 trillion. The new valuation still exceeds the March valuation of $852 billion by 50%. Investors have until October 30 to confirm their intentions. Investors report insufficient demand compared to previous OpenAI rounds. According to a person familiar with the situation, "there was no buzz. Every previous time OpenAI generated excitement, but this time it was more of a 'dull thud.' Some investors felt 'overwhelmed' after supporting previous rounds when OpenAI raised $40 billion in March 2025 and a record $122 billion this March.

Among the leading participants in the new round are Coatue and UAE funds. The new target is $150 billion below the previous $1.4 trillion proposal. Investors are also awaiting the Anthropic IPO valuation, scheduled for mid-November, before proceeding with OpenAI. Anthropic's valuation has dropped to $1.5 trillion, below the previously requested $2 trillion. OpenAI hopes to secure $30 billion as a 'bridge' to its own IPO, likely in the first half of 2027. CEO Sam Altman ruled out an IPO in 2026, citing safety concerns.

The low target valuation aligns with current challenges in the US tech market, where tech stocks are falling due to concerns about AI funding through debt. According to Jimmy Chang from Rockefeller Global Family Office, uncertainty around both IPOs is affecting the stock market. "The market needs to see a successful IPO. These companies need funding," Chang added. OpenAI is expected to raise less than $30 billion depending on investor interest. The October 30 date will show how much the $1.25 trillion is being sought before setting Anthropic's public price.