OpenAI lowers valuation target to secure up to $30 billion in new funding

OpenAI is pursuing a new funding round of up to $30 billion, led by UAE investors and Coatue, positioning it as a bridge before a potential IPO. The company has lowered its valuation target from an original $1.4 trillion pitch to $1.25 trillion due to weaker demand and some backers experiencing "indigestion" after earlier heavy investments. OpenAI confidentially filed an IPO prospectus with the SEC in June, and CFO Sarah Friar told employees in August that the company would be publicly traded by 2027, though CEO Sam Altman said in September the timing was unfavorable for going public. Competitor Anthropic is targeting a valuation between $1.5 and $2 trillion for its IPO.