Why OpenAI Lowered Its Price Tag Weeks Before Anthropic Goes Public

OpenAI lowered the target valuation for its latest funding round to $1.25 trillion, down from the $1.4 trillion investors were pitched earlier this month, with a commitment deadline of October 30. Morgan Stanley and Dragoneer had pitched the $1.4 trillion pre-money valuation, meaning before new investment, to private wealth clients, and demand fell short of earlier rounds. Some investors are waiting for Anthropic’s expected mid-November IPO, after its discussed valuation declined to $1.5 trillion from $2 trillion amid slower third-quarter growth. OpenAI, which was valued at $852 billion in March, is seeking $30 billion as a bridge to a likely first-half 2027 listing; CEO Sam Altman ruled out a 2026 IPO citing safety.