Report: OpenAI Gets $11B Funding at $1.25T Valuation
Is this proof of rock-solid confidence in its mission or is it a WeWork-style bubble finally deflating?
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Above: Sam Altman during the 2026 Dreamforce conference in San Francisco, California, on Sept. 15. Image credit: David Paul Morris/Bloomberg/Getty Images
The Facts
- OpenAI has closed about $11 billion in new funding, the first tranche of a round that values the artificial intelligence company at $1.25 trillion, Bloomberg and Reuters reported Friday.
- The remainder of the round is expected to close in the coming weeks and could raise the total to $20 billion. OpenAI initially sought $30 billion or more at a $1.4 trillion valuation, then scaled back amid a selloff in AI stocks.
- Coatue Management and T. Rowe Price reportedly joined the first close, while SoftBank Group Corp., MGX, Sequoia Capital, Founders Fund and Andreessen Horowitz also took part in the round. OpenAI is also working with investment banks to raise funds from retail investors.
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The Spin
Pro-industry narrative
Holding back a system until safety, alignment and monitoring are ready demonstrates responsible leadership, and billions in fresh investment at a higher valuation reflect strong confidence in OpenAI. Its continued pursuit of ambitious fundraising plans reinforces investor confidence in its long-term vision.
Industry-critical narrative
A cash-burning company with no profits and enormous spending commitments hardly justifies such a valuation. Cutting both the fundraising target and price suggests investors are waking up to circular vendor financing. Doubling its valuation after losing ground to rivals is a recipe for a potential WeWork-style reckoning.
