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ChatGPT maker OpenAI slashes its valuation target by $150bn to $1.25tn after investors push back on the $1.4tn price

ChatGPT maker OpenAI slashes its valuation target by $150bn to $1.25tn after investors push back on the $1.4tn price

Morgan Stanley and Dragoneer had pitched the higher figure to wealthy private clients, and demand was weak. One person said: 'There has been zero clamouring. This time is a bit of a thud.' OpenAI is close to raising up to $30bn in a round led by Coatue and UAE investors, but nothing is signed. Investors have until 30 October to commit.

Some backers report 'indigestion' after OpenAI raised a record $122bn in March.

Microsoft shares fell 2.23% as the Nasdaq suffered its steepest drop since June.

Rival Anthropic is reportedly eyeing a $1.5tn to $2tn valuation for its IPO.

MoreThe TelegraphOpenAI slashes valuation by $150bnYahoo FinanceOpenAI Just Cut Its Valuation Target by $150 BillionCTOL Digital SolutionsOpenAI cuts valuation target to $1.25tn for a small stake sale - CTOL Digital SolutionsTimes NowOpenAI Cuts Valuation Target To $1.25 Trillion As Investors Push Back On $1.4 Trillion PriceTechCrunchOpenAI working on new $30B raise at $1.25T valuation ahead of IPO - TechCrunch
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