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

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

'This time is a bit of a thud,' one person said of weak demand from Morgan Stanley's wealth clients, who were pitched the ChatGPT maker at $1.4tn. OpenAI is now chasing up to $30bn, with Coatue and UAE funds in talks to lead the round. Investors have until 30 October to commit. Microsoft shares fell 2.23% as the Nasdaq suffered its steepest drop since early June.

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

Others are holding off to see how rival Anthropic prices its stock market debut.

The reduced figure still sits nearly 50% above OpenAI's current $852bn valuation.

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 PriceNY PostSam Altman's OpenAI eyes $30B fundraising round ahead of IPO: report
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