OpenAI cuts valuation by $150bn to $1.25tn after investor pushback

OpenAI has reduced the valuation it is seeking in talks with investors by $150bn (£112bn), lowering the figure from $1.4tn to $1.25tn after pushback, according to the Financial Times. The reduction comes as investors weigh the cost of sustaining the artificial intelligence boom, with more than $1tn (£746bn) wiped off the value of US tech stocks yesterday. OpenAI is looking to raise $30bn before a stock market listing next year. Sarah Friar, the company’s chief financial officer, told employees in August that the ChatGPT maker “will be a public company in 2027”. The discussions began after investors approached OpenAI with proposals last month. Coatue, the American investment group, and investors from the United Arab Emirates are in discussion to lead the new round, according to the Financial Times.