OpenAI raises $11B at a $1.25T valuation

The valuation OpenAI secured is lower than initially sought, impacting the accounting gains Microsoft recognizes from its stake.

OpenAI secured $11 billion in funding by November 6, 2026, at a $1.25 trillion pre-money valuation. This amount represents the first close of a funding round that initially sought $30 billion or more, with some reports indicating an initial valuation target of $1.4 trillion or even $1.5 trillion. SoftBank and Abu Dhabi's MGX participated in this initial closing. The company's CFO, Sarah Friar, stated that OpenAI's business grew 70% quarter-over-quarter in Q3 2026, with its enterprise business doubling and revenue split evenly between consumer and enterprise. The funding round remains open for an additional $9 billion, potentially bringing the total to $20 billion. This valuation is lower than the initial ask, a situation mirrored by rival Anthropic, which is planning a Nasdaq listing with some investors now valuing it around $1.5 trillion, down from previous expectations of $2 trillion.

The discrepancy between OpenAI's initial valuation targets and the final $1.25 trillion pre-money valuation, particularly with the second tranche of funding not yet closed, suggests a tightening market for AI valuations. This comes despite OpenAI reporting strong business growth, indicating that investor appetite might be moderating or becoming more discerning. The situation also impacts NVIDIA, which is heavily reliant on OpenAI's compute demand, making the flow of funds critical for sustained expansion.

The revised valuation and phased funding approach for OpenAI, coupled with Anthropic's potential Nasdaq debut at a lower-than-expected valuation, signal increased scrutiny on AI companies. Investors are likely demanding clearer paths to profitability and sustainable business models rather than purely growth-driven narratives. This shift could pressure other AI startups seeking capital and influence future investment decisions across the sector.