Investors Want Anthropic's IPO Price First: Is That Why OpenAI Cut $10 Billion?

OpenAI cut its fundraising target by $10 billion, to $20 billion from $30 billion, and lowered its target valuation to $1.25 trillion from $1.4 trillion, with the first close now expected below $20 billion. The reduction followed an October tech-stock selloff in which the Nasdaq-100 lost about $2 trillion in value, and some backers reduced commitments. Investors had wanted to see the stock-market price of Anthropic, maker of the Claude chatbot, before putting more money into OpenAI; Anthropic is preparing to go public and could list on Nasdaq as soon as mid-November. A group of UAE investors including state-backed MGX is set to be the biggest buyer, while Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to join.