OpenAI IPO valuation target slashed by $150 bn after Nasdaq 100
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| Source: Stocktwits · via Yahoo Finance | Original article
OpenAI has cut its IPO valuation target by $150 billion, now seeking about $20 billion at a $1.25 trillion valuation.
OpenAI has trimmed its IPO valuation target by $150 billion, now seeking roughly $20 billion at a $1.25 trillion valuation, down from an earlier aim of $30 billion at $1.4 trillion, the Financial Times reports. The adjustment follows investor push‑back on the higher price and coincides with a 2 percent dip in Microsoft’s shares, the tech giant’s biggest backer.
The move matters because it reshapes what could become one of the largest private financings in tech history. A lower valuation narrows the gap between the proposed IPO price and OpenAI’s last disclosed valuation of $852 billion in March 2026, suggesting that capital markets are tempering expectations for the AI boom. It also signals that investors are demanding more modest pricing before committing to a funding round that could reach $30 billion.
As we reported on 31 October, OpenAI had already slashed its funding target by $10 billion amid a broader tech rout. The latest valuation cut deepens that trend and may influence the timing and structure of the company’s eventual public listing. It also raises questions about the sustainability of the lofty market caps that have been attached to generative‑AI firms.
Going forward, watchers should monitor the final terms of the up‑to‑$30 billion financing, the composition of the investor syndicate, and any further revisions to the valuation before an IPO filing. Market reaction to the revised numbers, especially from Microsoft and other strategic partners, will be a key barometer of confidence in OpenAI’s growth prospects and the broader AI sector’s valuation dynamics.
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