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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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Fal Doubles to 16 Billion Dollars: Inference Is Where AI Meets Its Customers

Photograph of Fal co-founders Burkay Gur and Gorkem Yurtseven seated on stools in front of a brick wall, wearing Fal sweatshirts.

Fal, a San Francisco startup that hosts and runs AI video, image, and audio models, has raised 1.3 billion dollars in its latest funding round, TechCrunch reported on November 3. The round was led by Bessemer Venture Partners, with participation from Nvidia, Sound Ventures, and T. Rowe Price, and it values Fal at 16 billion dollars, double its 8 billion dollar valuation in April, according to Bloomberg reporting cited by TechCrunch.

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Marvell Is Buying the Light: A 115 Billion Dollar Bet That AI Is a Connectivity Problem

A coil of fiber optic cable being installed in a trench alongside orange conduit at a construction site.

Custom chip designer Marvell has signed a deal to acquire optical chip and networking equipment maker Lumentum in an all-stock transaction with an enterprise value of 115 billion dollars, including debt, and an equity value of about 80 billion dollars. Lumentum shareholders will receive 4.5 shares of Marvell common stock for each share they hold.

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Anthropic Tells Investors It May Soon Cross Its Own Self-Improvement Line

Photograph of Anthropic CEO Dario Amodei speaking on stage at a TechCrunch event.

The most consequential AI disclosure of the week was a risk factor, not a product launch. In an amended S-1/A filing with the SEC on Monday, November 2, Anthropic added language to its Risk Factors section saying its internal estimates and expectations for future models indicate it may imminently meet its Responsible Scaling Policy definition of dramatically accelerated progress attributable to AI — the threshold the company associates with recursive self-improvement, the point where AI becomes good enough at building AI that gains compound.

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