OpenAI Seeks $30 Billion at $1.25 Trillion Valuation
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Khushi Jain
- October 23, 2026
OpenAI is seeking to raise approximately $30 billion at a valuation of $1.25 trillion, according to media reports. The ChatGPT creator is negotiating with potential investors as spending on artificial intelligence infrastructure and development faces increasing scrutiny across the technology industry.
The proposed valuation is $150 billion lower than the $1.4 trillion valuation previously considered during discussions, according to multiple media outlets.
The fundraising terms could change, and the process remains ongoing. OpenAI reportedly aims to finalise investor commitments by the end of next week.
Coatue Management is being considered as a potential co-lead investor in the round. OpenAI has also held discussions with other companies, including BlackRock, as well as several investment funds from the UAE.
Why OpenAI Is Reconsidering Its Valuation
Investor concerns about the scale of spending on AI infrastructure and development have contributed to questions around the valuations of major AI companies.
Technology stocks declined this week following mixed quarterly results from major companies, including Tesla and Meta. The developments have prompted investors to reassess whether the returns from substantial investments in AI will justify the spending.
OpenAI competitor Anthropic is scheduled to launch its first public offering next month, an event investors are monitoring for indications of market interest in highly valued AI companies.
The response to the planned offering could provide insight into investor appetite amid growing concerns about spending plans and the long-term profitability of AI startups.
Media reports also state that OpenAI has delayed its own initial public offering (IPO) until next year, with the company prioritising AI safety initiatives.
The latest fundraising effort follows OpenAI’s March funding round of USD 122 billion, which valued the company at USD 852 billion, including the capital raised.
Eight US States File Lawsuits Against OpenAI
OpenAI is also facing legal challenges in the United States. At least eight states have filed lawsuits alleging that ChatGPT infringes consumer protection laws by harming minors and misleading adults.
According to a complaint filed in Iowa, ChatGPT has allegedly provided harmful medical advice, encouraged paranoia and instructed individuals to harm others or take their own lives. The lawsuit further alleges that the chatbot exploits vulnerable people while presenting itself as friendly and compassionate.
Iowa Attorney General Brenna Bird accused OpenAI of misleading residents and endangering children in a public statement.
OpenAI said it had implemented child safety measures in ChatGPT and would continue to develop them as the model evolves.
The lawsuits come amid a broader increase in litigation under state consumer protection laws against social media and technology companies over alleged harm to children.
Arizona, Arkansas, Idaho, Kansas, Montana, Nebraska and West Virginia filed individual lawsuits in state courts on October 14, according to the source.
FAQs
1. How much is OpenAI seeking to raise?
OpenAI is seeking to raise approximately $30 billion.
2. What valuation is OpenAI targeting for the fundraising round?
The proposed valuation is $1.25 trillion, which is $150 billion below the previously considered valuation of $1.4 trillion.
3. Which investors are reportedly in discussions with OpenAI?
Coatue Management is being considered as a potential co-lead investor. OpenAI has also held discussions with BlackRock and several UAE investment funds.
4. Why are investors questioning AI company valuations?
Investors are reassessing spending on AI infrastructure and development and whether the returns will justify the investment.
5. Why have US states filed lawsuits against OpenAI?
The lawsuits allege that ChatGPT violated state consumer protection laws by harming minors and misleading adults. OpenAI said it has implemented child safety measures and will continue to develop them.
