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OpenAI is reportedly seeking about $30 billion in fresh funding at a valuation near $1.25 trillion, reducing its earlier target.

The proposed valuation is nearly 50% above OpenAI’s current $852 billion valuation, but remains below the $1.4 trillion figure previously presented to potential investors during fundraising discussions, The Financial Times reported on Friday.

The lower valuation target comes at a time amid a technology-stock selloff as the broader market questions AI infrastructure returns and financing costs.

Coatue and United Arab Emirates funds have discussed leading the round. OpenAI has set an October 30 commitment deadline and could raise less than $30 billion if investor demand falls short, the report noted.

Morgan Stanley and San Francisco-based technology investor Dragoneer marketed the offering to private wealth clients at the higher valuation. Demand was reportedly softer than during earlier OpenAI financing efforts, according to the report.

"All the prior times [OpenAI] have been on there’s been a frenzy. This time is a bit of a thud,” sources told FT.

Some investors also told the publication that they are waiting to see Anthropic’s expected initial public offering (IPO) pricing later this year before investing in its rival.

OpenAI is seeking capital as a bridge toward a possible public offering in the first half of 2027, though no date has been established, the report added.

OpenAI did not immediately respond to Benzinga’s request for comments.

OpenAI Rules Out 2026 IPO

OpenAI CEO Sam Altman earlier ruled out a 2026 IPO, citing unresolved AI safety and alignment concerns. "Right now would be an ill-advised moment to go public, and we don’t feel pressure on that," he said.

Last month, it was reported that OpenAI was pursuing a nearly $30 billion round at a valuation of about $1.4 trillion while delaying its IPO. The company intended to use the financing as a bridge to additional capital, with investor demand cited as a driver.

Meanwhile, OpenAI’s annualized revenue surpassed $40 billion, nearly doubling from the end of 2025, with President Greg Brockman saying the run rate surged more than 20% in July alone.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.