OpenAI has secured approximately $11 billion in new funding at a valuation of $1.25 trillion, according to reports from Bloomberg and Reuters, citing people familiar with the transaction.
The financing represents the initial closing of a larger fundraising round that could reach approximately $20 billion in the coming weeks.
The company had previously sought to raise at least $30 billion at a higher valuation, but scaled back its plans amid a broader selloff in technology stocks and growing investor scrutiny of artificial intelligence spending.
OpenAI declined to comment on the reported transaction.
Investors Back New Financing Round
According to Bloomberg, Coatue Management and T. Rowe Price participated in the initial funding close.
Other investors associated with the financing include SoftBank, Sequoia Capital, Founders Fund and Andreessen Horowitz.
Reuters also reported participation by SoftBank and MGX, citing investors familiar with the transaction.
The latest financing follows OpenAI’s $122 billion fundraising round in March, which valued the company at approximately $852 billion.
AI Valuations Face Greater Scrutiny
The fundraising comes as investors reassess the financial requirements of developing and operating advanced artificial intelligence systems.
Technology stocks have faced selling pressure amid concerns about the scale of spending on data centers, computing infrastructure and AI development.
The shift in market sentiment has also affected expectations for other major artificial intelligence companies.
Investors considering a potential initial public offering by OpenAI rival Anthropic have reportedly discussed valuations below earlier expectations.
OpenAI’s reported $1.25 trillion valuation represents an increase from its March financing, although it remains below the higher valuation initially targeted for the latest round.
The company has completed the first $11 billion portion of the financing, according to the reports. The timing and final size of the remaining fundraising have not been confirmed.
