Negative impactCompany
OpenAI cuts valuation target by $150 bn to $1.25 tn | Why it has scaled back its funding ambitions ahead of IPO
Mint 59 min ago·23 Oct 2026, 2:19 am
OpenAI has reduced its target valuation for a new funding round from $1.4 trillion to $1.25 trillion, citing investor caution over the high costs of artificial intelligence. The company is seeking up to $30 billion in fresh capital, which would value it at roughly $80 billion to $90 billion per share. This adjustment comes as the startup delays its initial public offering (IPO) plans, originally expected for 2025, to next year.
For investors, this move signals a cooling of the 'AI gold rush' and a more realistic approach to valuations. While OpenAI remains a dominant player in the sector, the scaling back highlights the financial risks associated with building advanced models. Market watchers should focus on whether the company can sustain its growth without burning through cash at unsustainable rates.
Excerpt from Mint
OpenAI has lowered its valuation target by $150 billion to $1.25 trillion as it nears the final stages of negotiations for a fresh funding round of up to $30 billion, against a backdrop of investor concerns over massive spending on artificial intelligence. The ChatGPT maker had discussed a valuation of $1.4 trillion…Read the original at Mint
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