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OpenAI has closed on about $11 billion of new funding at a $1.25 trillion valuation, people familiar with the matter said Friday, according to a report.
The people said the money was wired to the company as of Friday and is the first part of a larger round. The rest of the round could bring the total to as much as $20 billion in the coming weeks, one person said.
A smaller round than first planned
OpenAI first set out to raise $30 billion or more at a $1.4 trillion valuation, the report said, before scaling back its plans as AI stocks sold off. The company has been in talks for more than a month, after delaying its plans for an initial public offering, according to the report. An earlier report on Thursday evening said OpenAI had raised less than half of its first $30 billion target, with $11 billion received so far at the $1.25 trillion valuation.
The report said the mood around AI has shifted since the round began, because of concerns about spending on the physical infrastructure for artificial intelligence and possible new obstacles to data center construction after this week’s midterm elections.
Where the valuation stands
The report said OpenAI raised $122 billion in a March funding round at an $852 billion valuation. The reported $1.25 trillion valuation is higher than that March figure and below the $1.4 trillion first discussed for this round.
In plain words: OpenAI has reportedly collected about $11 billion from investors so far, and may get more, but less than it first hoped for.
JBizNews Desk | San Francisco
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