OpenAI Reportedly Raises $15B At $1.25 Trillion Valuation

According to CNBC’s David Faber, OpenAI's fundraising is half the $30 billion it initially sought from investors.

• The reported valuation is still about 47% above the $852 billion valuation attached to its March funding round.
• Nvidia provided OpenAI with approximately $30 billion, while SoftBank has provided $65 billion, CNBC’s David Faber reported.
• The reported funding comes ahead of Anthropic’s IPO, expected next week, with reports suggesting the company is looking to increase the pricing of its shares.

OpenAI reportedly raised $15 billion at a $1.25 trillion valuation on Thursday, half the $30 billion it first sought and at below the $1.4 trillion valuation it had pitched to investors.

CNBC’s David Faber said that OpenAI first went to market looking to raise as much as $30 billion at a $1.4 trillion valuation. He noted that the $1.25 trillion valuation is about 47% above OpenAI’s March round, when it raised $122 billion at an $852 billion valuation.

On Stocktwits, retail sentiment around OpenAI, which is yet to announce the date of its public debut, trended in ‘bullish’ territory over the past day.

OpenAI Continues To Raise Capital Despite Revenue Growth

OpenAI has taken in about $30 billion from Nvidia (NVDA) and about $65 billion from SoftBank, Faber said. According to him, the startup keeps raising money because it is burning a lot of cash, even with strong revenue growth.

CNBC reported on Wednesday that OpenAI’s revenue increased by about 50% from the second quarter to the third quarter. That growth has not eliminated the company’s need for additional capital to support its operations and expansion.

Anthropic IPO Raises The Stakes In AI Funding Race

The news comes less than a week before the planned initial public offering of rival Anthropic. CNBC said the company is expected to raise more than $80 billion, including about $26 billion from strategic partners such as Nvidia, Alphabet Inc.’s (GOOG, GOOGL) Google, and Advanced Micro Devices (AMD). The rest would come from institutional, retail and international investors.

Reports have suggested that bankers are looking to increase the pricing of Anthropic’s shares at a valuation higher than the $1.3 trillion to $1.4 trillion discussed earlier, possibly as high as $1.5 trillion or more.

On Stocktwits, retail sentiment around Anthropic improved to ‘extremely bullish’ from ‘bullish’ over the past day, accompanied by ‘extremely high’ levels of chatter.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<