OpenAI trims valuation target to $1.25tn after pitching higher price
OpenAI is in the final stages of a deal expected to value it at $1.25tn, after some investors resisted a $1.4tn price tag, according to people with knowledge of the talks. It is raising $30bn as a 'bridge' before an IPO, likely in the first half of 2027 (no date fixed). The $1.4tn was a pre-money valuation floated by Morgan Stanley and Dragoneer to Morgan Stanley private-wealth clients (documents seen by the FT). Demand is weaker than in earlier rounds: 'There has been zero clamouring... This time is a bit of a thud.' Investors describe 'indigestion' after OpenAI's $40bn (March 2025) and record $122bn (March 2026) raises, while Anthropic has raised close to $100bn this year. Some investors would rather wait to see how Anthropic's IPO, expected later this year, is priced. Coatue and UAE funds are in talks to lead, and the deal gives OpenAI a right of first refusal on new compute developed by UAE partners. Investors have until 30 October to commit, and OpenAI may raise less than $30bn. The backdrop is a US tech sell-off on worries about the debt-fuelled AI infrastructure boom. Jimmy Chang (Rockefeller Global Family Office): 'The market needs to see a successful IPO... These companies need funding.' OpenAI declined to comment; CNBC reported on Thursday that it was nearing $1.25tn. Caveats: $1.25tn is still a ~50% step-up on the current $852bn valuation; the FT does not say whether $1.25tn is pre- or post-money; sourcing is anonymous.
Why it matters
OpenAI is meeting price resistance at the top of the AI market: a marketed $1.4tn pre-money had to come down to $1.25tn, with weak demand and investors waiting for Anthropic's IPO pricing. It sets the reference point for late-stage AI valuations and shows the mega-round model (bridge rounds before IPO, Gulf money, compute rights traded for capital) running into investor fatigue. Read with today's Nasdaq/Meta row: the same AI-financing worry hitting public markets.
Executive takeaways
Deal: OpenAI in final stages of a ~$30bn 'bridge' round expected to value it at $1.25tn, down from a $1.4tn pre-money price marketed by Morgan Stanley and Dragoneer to MS private-wealth clients. | • Step-up: still ~50% above the current $852bn valuation. | • Demand: 'zero clamouring… a bit of a thud'; investor 'indigestion' after $40bn (Mar 2025) and a record $122bn (Mar 2026), with Anthropic raising close to $100bn this year. | • Leads: Coatue and UAE funds in talks to lead; OpenAI gets a right of first refusal on new compute developed by UAE partners. | • Timing: commitments due by 30 October; the round may come in below $30bn. IPO likely H1 2027, no date fixed. | • Anthropic read-across: some investors prefer to wait for Anthropic's IPO pricing (expected later this year). | • Backdrop: US tech sell-off on fears about a debt-fuelled AI infrastructure boom; 'The market needs to see a successful IPO' (Jimmy Chang, Rockefeller Global Family Office).
What Financial Times may be missing
The FT labels only the $1.4tn as pre-money and does not say whether $1.25tn is pre- or post-money; with a $30bn raise, the difference matters for the true step-up and for how far the price was really cut. There are no revenue, burn or compute-commitment numbers, so there is no way to judge the multiple being paid (the FT's companion Lex piece argues the revenue numbers really matter). SoftBank's role is not mentioned. Sourcing is anonymous and OpenAI declined to comment, so the final price and size could still move before the 30 October deadline. The Anthropic read-across is left implicit: if investors are waiting on Anthropic's IPO pricing, a weak or strong Anthropic debut could reprice OpenAI's bridge and its own IPO. The value of the UAE compute right of first refusal, and what it implies for governance or exclusivity, is not explained.
