OpenAI has raised about $11 billion of a planned $30 billion in its latest funding round, The Decoder reports, citing The Wall Street Journal. The funding puts the company’s valuation at $1.25 trillion, below the $1.4 trillion it had been seeking. That is a $150 billion difference between the valuation it reached and its target.
The shortfall comes as major investors reportedly show less interest in AI companies. The Decoder links the change to a tech sell-off after weak quarterly results from Google, Amazon and Intel. The account does not identify which investors pulled back or explain how much each had been expected to contribute.
Who might fund the rest?
OpenAI reportedly plans to seek up to $20 billion from family offices and high-net-worth individuals. Those are investment groups representing wealthy families and people with substantial personal fortunes. The planned amount is close to the $19 billion gap between the $30 billion target and the $11 billion raised so far, but the report does not say the full amount will be raised or that it would all come from this round.
OpenAI is also reportedly planning an IPO early next year. An IPO is when a company first sells shares to public investors. The account does not give a date, terms or expected share price, so the plan is not a confirmed listing schedule.
A funding race with Anthropic
OpenAI’s fundraising comes amid competition with Anthropic. The Decoder says Anthropic’s revenue has been growing faster lately and that it could go public as early as November. A successful IPO could give Anthropic more than $100 billion in capital, the report says, though that depends on the listing and how much money it raises.
OpenAI has recently regained some market share, according to the account, while the contest between the companies continues to shift. It has also been cutting prices and working on more efficient models to compete. The funding figures do not show how either company’s products perform for users, but they do show that OpenAI’s next financing steps may matter as it tries to keep pace with Anthropic.
Why it matters
For OpenAI users, the fundraising gap is a concrete sign that the company is seeking additional capital while competing with Anthropic; the company reportedly plans to pursue wealthy individuals and a possible IPO. The figures do not establish whether this will change product access, prices or service, and the IPO plans are not confirmed dates.
