OpenAI valuation: $11bn raised at $1.25 trillion, below its $1.4tn target

OpenAI has raised $11 billion so far in a new funding round that values the ChatGPT maker at $1.25 trillion, Bloomberg and Reuters reported on Friday, 6 November, citing people familiar with the deal. That is well below what the company was aiming for: in late September, Bloomberg reported OpenAI wanted about $30 billion at a $1.4 trillion valuation. OpenAI has not commented publicly on the figures.

The round is not finished. According to Bloomberg, it could reach about $20 billion and close in the coming weeks.

Why the number came down

The timing is bad for anyone selling AI shares. On Thursday, the tech-heavy Nasdaq 100 fell 6.4%, wiping out roughly $2.3 trillion in market value in its biggest one-day drop on record, Bloomberg reported. Investors had already been nervous about how much money AI companies are spending on data centres; the Democrats’ sweeping win in the US midterm elections added a new worry, because voter feeling about data centres has turned strongly negative, TechCrunch noted, and many observers expect tougher rules for the sector.

In that mood, paying $1.4 trillion for a company that still spends far more than it earns became a harder sell. OpenAI’s chief financial officer told CNBC the company is still investing in data centres despite the election results.

Anthropic’s IPO price talk is falling too

The same day, Bloomberg reported that potential buyers of shares in Anthropic’s planned stock market listing are now discussing a valuation of about $1.2 trillion to $1.3 trillion, with some as low as $1.1 trillion. In early October, some investors were floating $2 trillion. The Wall Street Journal reported talk as low as $1 trillion. Anthropic, the maker of Claude, has not announced a final price or date, and the Financial Times reported it plans to press ahead with the listing.

A repricing is not a cancellation. But two of the world’s biggest AI companies being valued lower in one week is the clearest sign yet that investors want proof of profits, not just promises.

Our take: what it means for Pakistan

For most Pakistanis, nothing changes tomorrow: ChatGPT and Claude keep working, and prices for users have not moved. The bigger effects are indirect.

• Freelancers and IT exporters: a lot of Pakistan’s software work is for US start-ups funded by the same investors. When AI valuations fall, start-ups slow hiring and squeeze contractor rates. Freelancers on Upwork and Fiverr should expect some clients to cut budgets in the next few months.
• Cheaper AI may follow: with OpenAI and Anthropic under pressure to show revenue, the two are competing hard for business customers, and OpenAI has already offered discounts to win them. That helps Pakistani developers building on their tools.
• Hype versus reality: a $1.25 trillion valuation is still enormous. The AI boom is not over; it is being priced more carefully.

What to watch next: whether OpenAI’s round reaches $20 billion, and the price Anthropic finally sets for its listing.