OpenAI lowers target valuation to $1.25 trillion

Morgan Stanley and technology investment fund Dragoneer offered wealthy clients the opportunity to invest in OpenAI at a $1.4 trillion valuation. The response was weaker than in previous rounds: some investors had already allocated significant sums to the company, while others prefer to wait for Anthropic’s expected IPO in November.

The funding round is expected to be led by funds from the UAE and Coatue Management. One source stated that, under the deal’s terms, OpenAI will gain priority rights to purchase new computing capacity from partners in the UAE. The company declined to comment.