OpenAI secures $11 billion in new funding

OpenAI has secured $11 billion in new funding, marking the first close of a larger fundraising round that values the company at $1.25 trillion. According to Nairametrics, the funds were wired to the company as of Friday, November 6. While Gulf News and CNA - Business report that the company's valuation has decreased from an initial $1.5 trillion target, Nairametrics notes the $1.25 trillion figure represents an increase of approximately 46.7% from its valuation in March.

The $11 billion represents a portion of an original funding target of up to $30 billion, according to Gulf News, CNA - Business, and Economic Times Tech. Nairametrics reports that the total round could eventually reach as much as $20 billion, with remaining commitments expected in the coming weeks. Economic Times Tech attributes the scaling back of initial plans to market conditions and shifting investor sentiment regarding AI investments and infrastructure costs.

Investors participating in the initial close include SoftBank, MGX, Coatue Management, and T. Rowe Price, according to Nairametrics, Gulf News, and CNA - Business. Nairametrics further identifies Sequoia Capital, Founders Fund, and Andreessen Horowitz as participants in the broader round, and notes that a group of investors from the United Arab Emirates has also joined. OpenAI is reportedly working with investment banks to seek capital from retail investors and high-net-worth individuals.

Brief written by urgent.news from Gulf News, Nairametrics, Economic Times Tech, CNA - Business, Channel News Asia — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.