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Startups·1 min read

OpenAI raises $11 billion at $1.25 trillion valuation

OpenAI has raised $11 billion at a $1.25 trillion valuation, well short of the $30 billion-plus at $1.4 trillion it had originally targeted.

OpenAI logo displayed on a screen beside financial charts representing its new funding round and valuation.
Image: techinasia.com
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OpenAI has closed a funding round of $11 billion at a valuation of $1.25 trillion, a result that falls short of the company's earlier ambitions.

Below the original target

The company had previously aimed to raise $30 billion or more at a valuation of $1.4 trillion. The final figures therefore come in at roughly a third of the minimum amount sought and at a valuation about $150 billion lower than the earlier goal.

Even so, a $1.25 trillion valuation places OpenAI among the most highly valued private companies in the world, and an $11 billion raise remains one of the largest single funding rounds in the technology sector.

Why it matters

The round is a gauge of investor appetite for large AI developers, whose training and infrastructure costs run into the billions. The gap between the target and the outcome suggests that the terms the company hoped for were not fully met, even as demand for its stock stays strong.

Details such as the investors taking part, the structure of the deal and how OpenAI plans to deploy the capital were not part of the information available at the time of writing.

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Tags:openaifundingvaluationaiventure capital

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