OpenAI raises $11 billion at a lower $1.25 trillion valuation as Anthropic IPO price falls
OpenAI raised about $11 billion at a $1.25 trillion valuation, below its earlier target, and Anthropic's expected IPO valuation has dropped after the AI stock selloff. Here's what it means.
The AI money machine is slowing down. OpenAI has raised about $11 billion at a $1.25 trillion valuation, well below the bigger amount and higher price it was originally aiming for. At the same time, investors are reportedly lowering what they’re willing to pay for Anthropic ahead of its planned stock market debut. Both changes follow a huge drop in AI and chip stocks this week. Here’s what happened and what it means.
What happened with OpenAI’s funding?
According to Bloomberg, as summarized by AI Weekly, OpenAI received roughly $11 billion on Friday, November 6, 2026, at a $1.25 trillion valuation. The key numbers:
- Original plan: raise $30 billion or more at a valuation of around $1.4 trillion to $1.5 trillion (reports differ on the exact earlier target).
- New plan: a smaller round of about $20 billion at $1.25 trillion. The rest is “expected to be completed in the coming weeks.”
- Investors: SoftBank and Abu Dhabi’s MGX anchored the first part. Coatue Management and a group of UAE-based backers also took part.
According to The Wall Street Journal and The Decoder, as reported by ValueAdd VC, OpenAI plans to raise the rest from family offices and wealthy individuals, rather than only from big funds and tech companies.
Why did OpenAI lower its target?
The main reason is the AI stock selloff. On Thursday, November 5, the Nasdaq 100 fell about 6%, losing a record amount of value in one day, as chip stocks crashed after the US midterm elections. According to the reports, that fear spread from public markets into private funding, and some investors reduced their commitments. We explained the crash in our article on the Nasdaq correction and AI chip stocks.
Analysts say a missed target suggests investor appetite for giant AI funding rounds is cooling, not just doubts about one company.
Is .25 trillion still a lot?
Yes, a huge amount. For comparison, OpenAI’s past valuations, as listed by ValueAdd VC:
- 2023: about $29 billion
- October 2024: $157 billion
- March 2025: $300 billion
- March 2026: $852 billion
- November 2026: $1.25 trillion
So OpenAI’s value is still rising, just more slowly than it hoped. It’s also the first OpenAI round, in ValueAdd VC’s tracking, that missed its target.
What about Anthropic’s IPO?
Anthropic, the maker of Claude, is preparing to go public soon. According to Bloomberg, as summarized by AI Weekly:
- Formal marketing to investors is expected to start the week of November 9.
- Potential buyers are now discussing a valuation of about $1.2 trillion to $1.3 trillion, with some talking about $1.1 trillion.
- That’s down from $1.4 trillion to $1.5 trillion discussed last week, and the $2 trillion figure floated in early October.
- Anthropic and its selling shareholders may start with a conservative size and price, then raise them if demand is strong.
Analysts quoted in the report had different views. HSBC’s Max Kettner said “around $1 trillion could be a more comfortable level for the valuation.” Read our earlier explainer on Anthropic’s IPO plans.
What it means
- For the AI industry: money is still flowing, but investors are becoming more careful about sky-high prices. Companies may need to show stronger revenue and profits.
- For OpenAI’s IPO: a lower private valuation sets a lower starting point if OpenAI goes public, which it reportedly may do as early as next year. See our guide on OpenAI’s IPO and whether you can buy OpenAI stock.
- For everyday users: nothing changes right away. ChatGPT and Claude work as normal. Over time, pressure to make money could affect prices, usage limits and free plans.
ByteTidings does not give financial advice. If you’re thinking about investing in AI companies or an upcoming IPO, do your own research, read the official filings, and consider speaking to a licensed financial adviser.
Frequently asked questions
How much did OpenAI raise?
According to Bloomberg, OpenAI received about $11 billion on November 6, 2026, at a $1.25 trillion valuation, as part of a round now targeting about $20 billion.
Why is OpenAI’s valuation lower than planned?
A sharp selloff in AI and chip stocks spread into private markets, and some investors reduced their commitments, so OpenAI cut both the round size and the valuation.
When is the Anthropic IPO?
According to Bloomberg, formal marketing is expected to begin the week of November 9, 2026, with Anthropic reportedly aiming to list soon after. Exact dates and pricing haven’t been confirmed.
Can I buy OpenAI stock?
Not on the public stock market. OpenAI is still a private company. It has reportedly discussed an IPO as early as next year.
Disclosure: AI tools, including Claude, helped write this article.
