OpenAI has lowered the valuation target for its latest funding round to $1.25 trillion, the Financial Times reported. That sits below the $1.4 trillion price investors heard earlier this month.
The new figure would still lift OpenAI almost 50% above its $852 billion valuation from March. Investors have until October 30 to commit.
Why Did OpenAI’s $1.4 Trillion Pitch Land With a Thud?
Morgan Stanley and tech fund Dragoneer took the round to the bank’s private wealth clients. They pitched a $1.4 trillion pre-money valuation, documents seen by the FT show.
Several people close to the process said demand fell short of earlier OpenAI rounds.
“There has been zero clamouring. All the prior times [OpenAI] have been on there’s been a frenzy. This time is a bit of a thud,” a person with knowledge of the deal said.
Some of those people said investors also felt “indigestion” after backing earlier rounds. OpenAI raised $40 billion in March 2025 and a record $122 billion this March.
Coatue and UAE funds are in talks to lead the new round, one person told the FT. CNBC, which reported the $1.25 trillion figure on Thursday, described it as pre-money. That puts the new target about $150 billion below the earlier pitch.
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Why Some Investors Are Waiting on Anthropic First
Notably, other investors gave the FT a different reason for holding back. They would rather see how Anthropic prices its IPO, expected in mid-November, before committing to OpenAI.
Anthropic’s own price tag has already come down. Some investors discussed a valuation of $1.5 trillion for the listing, below the $2 trillion it once sought, after third-quarter growth slowed.
On those reported figures, the gap between the 2 labs has widened to about $250 billion. Earlier this week, it stood near $100 billion.
OpenAI wants the $30 billion as a “bridge” to its own listing, likely in the first half of 2027. CEO Sam Altman ruled out a 2026 IPO last month, citing safety.
Why the Wider Stock Market Is Watching Both Labs
The lower target comes as US tech stocks have sold off over worries about debt-funded AI spending. Chip stocks shed $2 trillion in 8 sessions this month.
Jimmy Chang of the Rockefeller Global Family Office said uncertainty around both IPOs is weighing on US stocks. His office holds exposure to both labs.
“The market needs to see a successful IPO. These companies need funding,” Chang added.
OpenAI may raise less than $30 billion, depending on investor interest. The October 30 deadline will show how much demand sits at $1.25 trillion before Anthropic sets a public price.
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