AI SINGLE SOURCE

OpenAI raises about $11 billion, less than half of its $30 billion goal

First reported 31 Oct, 09:22 UTCSource: The DecoderLast editorial activity 31 Oct, 09:22 UTCWrite a comment ↓

Abstract 3D render visualizing artificial intelligence and neural networks in digital form. — Illustrative photo.Photo by Google DeepMind on PexelsOpenAI logo shown for identification only; no affiliation with or endorsement of WORLDTECH is implied.

OpenAI, an artificial intelligence company based in San Francisco, has collected about $11 billion in its latest funding round, according to the Wall Street Journal. The sum is less than half of the $30 billion the company was seeking.

Valuation comes in below target

The round valued the company at $1.25 trillion, short of the $1.4 trillion it had hoped for. The shortfall is reportedly tied to waning interest from large investors rather than to any statement from the company itself, according to The Decoder.

The pullback coincides with a tech sell-off that followed weak quarterly results from Google, Amazon and Intel.

Rival listing plans

Anthropic is reportedly pushing to go public as early as November. OpenAI is reportedly planning an initial public offering early next year, a sale of its shares to the public on a stock exchange.

Open questions

Will OpenAI close the remaining gap to its $30 billion goal?
Could the lower valuation change the timing of OpenAI's planned IPO?

What Matters Now

Group of colleagues working together in a bright, modern meeting room setting. — Photo: Darlene Alderson / Pexels

Startups & Business DEVELOPING

Key facts

OpenAI secured roughly $11 billion in its latest funding round, under half of the $30 billion it sought.
The round's valuation landed at $1.25 trillion, below the $1.4 trillion the company had been aiming for.
According to the Wall Street Journal, major investors are stepping back amid a recent tech sell-off.
Rival Anthropic is reportedly pushing to go public as early as November.
OpenAI is reportedly planning a public listing of its shares early next year.

Sources & evidence

The Decoder Reporting source
OpenAI raises just $11 billion of its $30 billion target as big investors lose their AI appetite ↗
https://the-decoder.com/openai-raises-just-11-billion-of-its-30-billion-target-as-big-investors-lose-their-ai-appetite/