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OpenAI closed an $11 billion first tranche at a reported $1.25 trillion valuation, below its original ask, with SoftBank and MGX participating in the opening close.
Key Takeaways
- OpenAI closed $11B of a round now targeting about $20B at a reported $1.25T valuation.
- SoftBank and MGX joined the first close; about $9B is expected in coming weeks.
- The round was first pitched at $30B or more at roughly $1.4T.
Lead
OpenAI closed the first tranche of a new funding round on November 6-7, 2026, taking in $11 billion at a reported post-money valuation of $1.25 trillion. SoftBank Group and Abu Dhabi's MGX took part in the opening close. Reports also name Coatue Management and a group of investors based in the United Arab Emirates. The money will go toward chips, data centers and research.
The numbers are smaller than the pitch. OpenAI first went to investors in September seeking $30 billion or more at about $1.4 trillion. The current target is roughly $20 billion, which leaves about $9 billion still to raise.
What Did OpenAI Actually Raise?
OpenAI raised $11 billion in a first close, roughly 55% of the revised $20 billion target and about 37% of the original $30 billion ask. The remaining $9 billion is expected over the coming weeks. OpenAI has not published a breakdown of what each investor contributed, so individual cheque sizes remain undisclosed.
The company is still private, and the valuation comes from press reports rather than a company filing. That distinction matters: a "reported" $1.25 trillion figure reflects negotiated terms that could shift if later investors price differently.
Why Did the Valuation and Round Size Shrink?
The round shrank because AI equities sold off and some investors cut their commitments. The original pitch came when appetite for AI infrastructure was stronger. Public-market declines in AI names since then have made late-stage buyers more selective about what they will pay.
Cutting the headline valuation from about $1.4 trillion to $1.25 trillion is a drop of roughly 11%. It is still a large step up from March 2026, when OpenAI completed a $122 billion round at an $852 billion post-money valuation. That earlier round was anchored by Amazon ($50 billion), Nvidia ($30 billion) and SoftBank ($30 billion). Much of it came tied to vendor relationships and contingent terms, so the cash that was free of strings was far smaller than the headline.
How Does the New Valuation Compare With Revenue?
The new valuation implies a lower revenue multiple than March, though revenue figures are estimates. OpenAI was reported to be running at about $2 billion a month, or $24 billion annualized, in March. Estimates for the end of September range from about $50 billion to $70 billion annualized.
At $852 billion, the March multiple was roughly 35 times annualized revenue. On the lower September estimate, the new round prices OpenAI at about 25 times; on the higher one, about 18 times. The valuation rose about 47% since March, while the implied multiple fell. Investors are paying more in absolute terms but are demanding more revenue for each dollar. Because OpenAI has not confirmed these revenue numbers, the multiple is an estimate.
What Does This Mean for the IPO Race?
The round lands as OpenAI's main rival heads toward public markets. Anthropic is reported to be preparing an IPO as soon as next month, targeting about $1.5 trillion. Prospective buyers have floated a figure nearer $1.1 trillion, down from the $965 billion discussed in May.
OpenAI reportedly filed confidentially for an IPO in June 2026, though CEO Sam Altman has denied it will list this year. A listing in 2027 or later looks more plausible. Until then, private rounds like this one set the reference price, and a weak reception for Anthropic could pull OpenAI's marks lower.
Strategic Context
Capital intensity is the underlying pressure. OpenAI's spending on compute and data centers runs far ahead of its revenue, and each round has to fund the next phase of buildout. SoftBank has now backed OpenAI in both the March and November rounds, deepening its exposure to a single company. MGX's presence extends the Gulf-capital role in AI infrastructure financing.
Outlook
OpenAI has $11 billion in hand at a $1.25 trillion mark, below the $1.4 trillion it first sought. The central question is whether the final $9 billion closes at the same price. A full close at $1.25 trillion would signal that top-tier AI valuations are holding, while a lower price would reset comparisons for Anthropic and other late-stage AI companies. Anthropic's pricing next month is likely to shape that outcome.
