OpenAI Raises $15 Billion at $1.25 Trillion Valuation, About Half Its Original Target

OpenAI has raised $15 billion at a $1.25 trillion valuation, CNBC reported on Thursday, November 12, citing people familiar with the matter. Several outlets relaying the report said the company had originally aimed to raise up to $30 billion at a $1.4 trillion valuation, so the round closed at about half the initial target and at a lower price (TradingView, MLQ). OpenAI is private, so terms come from press reports rather than filings.

The raise follows reporting earlier this week on OpenAI's finances. Third-quarter revenue crossed $10 billion for the first time, an almost 50% jump from about $6.7 billion in the second quarter, and the annual revenue run rate reached $50 billion, Bloomberg reported. The Wall Street Journal reported that the operating loss widened to $10.9 billion from $10.1 billion, even as the adjusted operating margin improved to -109% from -150%. In other words, revenue is growing quickly, but the company still spends roughly twice what it brings in.

The timing puts OpenAI's private-market price next to a public benchmark. Rival Anthropic, which reported third-quarter revenue of $17 billion and an $81 billion run rate at the end of October, is seeking a valuation of up to $1.4 trillion in its IPO, with a $70 to $78 per share range and pricing expected on November 18, according to its amended S-1. OpenAI's new private valuation therefore sits below the top of Anthropic's targeted public valuation. Note that the two companies count annualized revenue differently: Anthropic includes sales made through cloud partners, while OpenAI counts only its share.

For public markets, the round matters mostly through OpenAI's spending. Its losses largely fund compute, which flows to chip, cloud and data center suppliers. A smaller-than-planned raise could pressure how fast OpenAI can expand those commitments, while the Anthropic pricing next week will show how public investors value the same business model.