OpenAI secures $11bn in funding at $1.25tn valuation

OpenAI has secured $11 billion in fresh funding as part of a larger financing round that values the artificial intelligence company at $1.25 trillion, according to a report published on Friday (November 6).

The funding represents the first portion of a broader investment round. The company had initially targeted up to $30 billion at a valuation of around $1.5 trillion, but scaled back its expectations amid cooling investor sentiment towards AI companies.

Investors including SoftBank, MGX, Coatue Management and T. Rowe Price participated in the funding, according to Reuters reports. The remaining portion of the round could be completed in the coming weeks.

The fundraising comes as major AI developers face growing pressure over the cost of infrastructure expansion, including investments in data centres and computing capacity.