OpenAI reportedly raises about $11 billion of a $30 billion target at a $1.25 trillion valuation

OpenAI has raised less than half of the $30 billion it sought in its latest funding round, The Decoder reports, citing the Wall Street Journal. The company has secured about $11 billion so far, at a valuation of $1.25 trillion, below the $1.4 trillion it was aiming for. The shortfall is reportedly due to fading interest from major investors during a tech sell-off driven by weak quarterly results from Google, Amazon and Intel. OpenAI now plans to raise up to $20 billion from family offices and high-net-worth individuals. It is also reportedly planning an initial public offering early next year. Rival Anthropic, which filed publicly for its IPO this week, has recently grown revenue faster and could go public as early as November, according to the report. The Decoder notes that OpenAI has won back some market share, in part through price cuts and more efficient models. The result matters beyond OpenAI. It suggests that the largest private AI developer can no longer count on institutional investors to fund it at ever-higher valuations, just as both leading labs prepare to sell shares to the public.