OpenAI has secured about $11 billion in its latest fundraising round, less than half of its $30 billion target, according to the Wall Street Journal. Its valuation reached $1.25 trillion, below the $1.4 trillion it had sought.
The shortfall reportedly reflects waning interest from major investors. It comes amid a tech sell-off driven by weak quarterly results from Google, Amazon, and Intel.
OpenAI now plans to seek up to $20 billion from family offices and high-net-worth individuals. The company is also reportedly planning an IPO early next year.
Anthropic grows revenue faster than OpenAI
Meanwhile, rival Anthropic has recently grown revenue faster than OpenAI. Anthropic could go public as early as November. A strong IPO could give it well over $100 billion in capital to withstand a difficult stretch.
OpenAI has recently regained some market share, though the competition has shifted back and forth. It has cut prices and introduced more efficient models as it works to hold its position.
The fundraising gap puts OpenAI's next financing plans in focus as both companies consider public listings. OpenAI's next stated step is to seek up to $20 billion from family offices and high-net-worth individuals.
