OpenAI raises $11 billion at $1.25 trillion valuation

Anthropic's IPO hits valuation resistance

The news came just hours after reports about OpenAI's main rival. Potential buyers of shares in Anthropic's planned IPO are leaning toward a much lower valuation than the company sought. Its market value could drop to $1.1 trillion, compared with the $2 trillion that was expected only a month ago.

OpenAI itself had signalled that it would go public this year, but those plans have slipped. The market now expects the company's stock market debut to take place next year.

A nervous market for AI

The backdrop is delicate for the AI sector. The Democrats' sweeping win in the US midterm elections, together with largely negative voter sentiment about data centers, has made investors uneasy. Many of them expect regulatory challenges down the road.

For readers following the AI race, the numbers show two things at once. Capital is still available at a scale few companies have ever seen, and a $1.25 trillion price tag remains extraordinary. But the gap between the $30 billion goal and the roughly $20 billion now expected, along with the slipping IPO timelines at both OpenAI and Anthropic, suggests investors are becoming more selective about what they will pay.

The next milestone is the close of the round, expected within weeks, which will show the final amount OpenAI raises and whether it holds the $1.25 trillion valuation.