OpenAI has reduced its valuation target to $1.25 trillion as it prepares to raise up to $30 billion in a new funding round. The company originally sought $1.4 trillion based on internal documents seen by the Financial Times, but weaker demand from investors has forced a revision. Backers including UAE entities and Coatue are leading the capital injection, which serves as a bridge toward a potential initial public offering. CEO Sam Altman previously noted that market conditions were not yet favourable for going public, despite CFO Sarah Friar telling staff in August that a listing would occur by 2027. Meanwhile, competitor Anthropic is also preparing its own IPO with a higher valuation range.
This adjustment signals that the artificial intelligence sector faces significant headwinds for a massive public listing. Investors are showing caution after heavy earlier commitments, making the valuation gap between OpenAI and its peers a critical metric. The shift highlights the difficulty of pricing unproven technology at such extreme levels without immediate revenue proof.
- Valuation dropped from $1.4 trillion to $1.25 trillion
- Funding round led by UAE investors and Coatue
- Target IPO date remains 2027 according to internal staff
