OpenAI Slashes Valuation Target by $150B to $1.25T as Investors Push Back
Summary
OpenAI cut its proposed valuation to $1.25 trillion from $1.4 trillion while negotiating a roughly $30 billion funding round, a 10.7% reduction driven by investor resistance to the earlier target. Coatue Management is discussing a co-lead role, with BlackRock and UAE funds also in talks; commitments could be finalized by the end of next week. The revision still sits well above OpenAI's March 2026 post-money valuation of $852 billion, so this is a reset of fundraising expectations, not a collapse. The read-across is Anthropic's draft IPO prospectus: $16.3 billion in first-half 2026 revenue against an $80.7 billion net loss, about $72 billion of which is non-cash convertible-instrument charges, plus infrastructure commitments reported above $600 billion. Together the two disclosures point to investors demanding a clearer path from AI revenue to covering compute costs. OpenAI's potential 2027 IPO and Anthropic's listing are the next checkpoints on whether these valuations hold.
This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Brave New Coin.