Skip to header Skip to main navigation Skip to main content Skip to footer

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

Breadcrumb

  • Home
  • 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.

Rocky Mountain Madman LLC
OpenAI
AI Funding
Frontier Models
Enterprise AI
AI Pricing

Ai Industry News

DeepSeek Bets on Robot Brains, Leading Winverse AI Seed Round at a $400 Million Valuation

Cartoon illustration of a glowing robot brain hovering above a workshop robot arm learning to pick up a coffee mug while another robot watches.

DeepSeek has agreed to lead the first funding round for Winverse AI, a months-old stealth startup building artificial intelligence for robots, Bloomberg reported on October 12, citing people familiar with the matter. The seed round amounts to tens of millions of dollars and would value Winverse at about 400 million dollars after the investment. Meituan's Long-Z Investments has also committed capital, according to the reports. One caution belongs up front: the deal has not closed, and the terms and the investor list could still change.

  • Read more about DeepSeek Bets on Robot Brains, Leading Winverse AI Seed Round at a $400 Million Valuation

Britain Is Back in the Room: UK Testers Regain Access to Frontier Models, Including Gemini 4 Argon

Cartoon illustration of a robot safety inspector examining a glowing AI orb inside a glass testing chamber in a London laboratory.

Britain's AI Security Institute is evaluating the latest generation of frontier models again, including Google's Gemini 4 Argon. AI Minister Kanishka Narayan confirmed the evaluations on Monday, October 12, in a speech at Imperial College London's Base One incubator, as the government unveiled a wider package to put frontier AI to work on national cyber defences and to prepare for serious incidents involving autonomous agents.

  • Read more about Britain Is Back in the Room: UK Testers Regain Access to Frontier Models, Including Gemini 4 Argon

Cloudflare's Clef-omni: A Decision Model That Scores Text, Images, Audio, and Video in One Call

Cartoon illustration of a robot judge sorting film strips, sound waves, photographs, and documents into a single glowing funnel

Cloudflare rolled out Clef-omni on October 9, putting a new 30-billion-parameter model on Workers AI that does something most AI launches don't: it refuses to chat. Clef-omni is a decision model — it reads text, JSON, images, audio, and video in a single request and answers with calibrated probabilities over a schema of typed questions you define, with no prose and no output parsing.

  • Read more about Cloudflare's Clef-omni: A Decision Model That Scores Text, Images, Audio, and Video in One Call

Pagination

  • First page « First
  • Previous page ‹ Previous
  • …
  • Page 22
  • Page 23
  • Page 24
  • Page 25
  • Current page 26
  • Page 27
  • Page 28
  • Page 29
  • Page 30
  • …
  • Next page Next ›
  • Last page Last »

Copyright © 2026 Rocky Mountain Madman LLC - All rights reserved

Developed and Designed by Rocky Mountain Madman LLC