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OpenAI Raises 11 Billion Dollars at a 1.25 Trillion Dollar Valuation, and the Market Is Blinking

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  • OpenAI Raises 11 Billion Dollars at a 1.25 Trillion Dollar Valuation, and the Market Is Blinking
Photograph of OpenAI CEO Sam Altman seated on stage during a TED talk.

OpenAI has reportedly raised 11 billion dollars so far in a new funding round that values the company at 1.25 trillion dollars, Bloomberg reported on Friday, in a story carried by TechCrunch on November 6. The round has not closed yet. It is expected to close in the coming weeks and could total about 20 billion dollars, according to a source familiar with the matter. TechCrunch said it had reached out to OpenAI for comment. Even at a trillion-dollar-plus valuation, the striking part of the report is not the size of the number. It is the direction it moved.

In late September, Bloomberg reported that OpenAI was looking to raise 30 billion dollars in this round. The current figures fall well short of that target, and separate reporting on Friday said OpenAI had lowered its proposed valuation to 1.25 trillion dollars from 1.4 trillion dollars and cut its fundraising goals by about 10 billion dollars. Its chief rival is seeing the same repricing. Bloomberg also reported on Friday that potential buyers of shares in Anthropic's upcoming public offering are eyeing a substantially lower valuation than the company had targeted, with some buyers seeing it as low as 1.1 trillion dollars, compared with the 2 trillion dollars investors were said to expect roughly a month ago.

New spending data helps explain the blink. A report from Ramp, also covered by TechCrunch on November 6, found that business spending on AI tokens grew only 1.5 percent across August and September, after growing 42 percent in July, even as token volumes kept rising. Ramp's lead economist, Ara Kharazian, pointed to price competition rather than weak demand. OpenAI halved API prices for GPT-6 Sol and GPT-6 Luna in September, and Anthropic has cut prices for Fable 5.1 and Opus 5.5, a move the company said in a recent filing reduced revenue growth by about 600 million dollars. Median firms spend only 12 to 15 dollars per employee per month on AI, Ramp found, while the top 10 percent spend 600 to 1,000 dollars. Spending did re-accelerate in October, rising 8.9 percent from September 23 to October 23, but the hypergrowth assumption is clearly under pressure.

The politics have shifted at the same time. TechCrunch noted that the Democratic landslide in this week's United States midterm elections, and strongly negative voter sentiment around data centers, has caused jitters across the market, with further regulatory challenges expected. OpenAI had previously suggested it would go public this year, then delayed those plans, and an initial public offering is now expected at some point next year. None of this amounts to a collapse. A company raising 11 billion dollars at a 1.25 trillion dollar valuation is still operating at a scale no software business has reached before. What has changed is that investors are now asking what the revenue underneath that valuation actually does next.

For people building with AI, this is mostly good news, and it should be used. A buyer's market means the price war is real, routing work to cheaper models pays, and no business case should be built on today's list price or on the assumption that a single provider's growth curve justifies lock-in. The labs still need enormous amounts of capital for compute, and they will keep competing for developers while they raise it. The practical move is the unglamorous one: measure cost per completed task, keep a second provider integrated, and let the trillion-dollar argument happen between the labs and their investors.

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Claude Duet Reaches Out First: Anthropic's Proactive Agent Joins the Always-On Race

Anthropic CEO Dario Amodei speaking on stage at a technology conference.

Anthropic unveiled Claude Duet on Wednesday, a standalone agent app that does not wait to be asked. Announced on October 21 and opening as a waitlisted research preview for United States subscribers on the Pro and Max plans, Duet monitors the apps you have connected, sends a briefing each morning, checks back every few hours, and alerts you when something needs your attention. It is built around Anthropic's Opus 5.5 model, runs on iOS, Android and claude.ai, and works in one ongoing thread that reuses the memory, skills and connectors from your Claude account.

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OpenAI Moves Into Google Cloud: The Frontier Is Now Sold Everywhere

Server racks with colorful status lights inside a Google data center.

OpenAI announced on Wednesday, October 21, that its frontier models and its Codex agentic workflows are coming to Google Cloud's Model Garden, with general availability planned in the coming weeks and customers able to request access now. Google Cloud customers will be able to buy the models through Google Cloud Marketplace and draw the purchases down against existing Google Cloud spend commitments, and OpenAI said the models will soon also be available inside Google Antigravity and the Gemini Agent. Reuters reported that the offering includes OpenAI's latest models such as GPT-6 Astra.

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Anthropic Needs More Compute Than Its Own Cloud Partners Will Sell It

Anthropic CEO Dario Amodei speaking on stage at a technology conference.

Anthropic's problem, in its own draft IPO prospectus, is not demand. It is supply. The Wall Street Journal reported on October 20 that it had viewed the draft S-1, and TechCrunch summarized the filing the same day: Anthropic has sought more cloud capacity than Amazon Web Services, Google and Microsoft were willing to provide, in part because those partners increasingly see the Claude maker as a competitor rather than just a customer.

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