OpenAI closes an $11 billion first slice of a round valuing it at $1.25 trillion

OpenAI has closed on about $11 billion in new funding, the first part of a round that values the San Francisco AI developer at $1.25 trillion, according to people familiar with the matter. The money had been wired to the company as of Friday, and the rest of the round, which could reach about $20 billion in total, is expected to be completed in the coming weeks. SoftBank and MGX took part, two investors said.

The figures fall short of the company's earlier ambitions. In late September OpenAI was reported to be seeking $30 billion or more at a valuation of about $1.4 trillion, and two investors said the valuation has come down from a $1.5 trillion level it had initially sought. OpenAI raised $122 billion in March at a valuation of $852 billion, and it has delayed plans for an initial public offering.

The round closes as sentiment toward AI companies has cooled. Technology shares fell after this week's U.S. midterm elections, in which opposition to data-centre projects featured in many races. Potential buyers of shares in the planned IPO of rival Anthropic, which filed to go public last week, are eyeing a valuation well below the roughly $2 trillion investors were said to expect about a month ago.