OpenAI speeds up fundraising to get ahead of Anthropic's IPO

what happened

According to Reuters, citing two people familiar with the matter, OpenAI is trying to lock in investor commitments before Anthropic's expected public debut in mid-November. The round, about $30 billion, could value the ChatGPT developer above $1.4 trillion. SoftBank Group and Abu Dhabi's MGX, both existing backers, are reportedly in talks to take part.

The two AI labs draw on much the same pool of investors, and the competition for money has intensified as each chases a trillion-dollar valuation. OpenAI says its annualized revenue reached $50 billion and expects $70 billion by year-end. Anthropic told investors its quarterly revenue rose to $16.8 billion in the third quarter, compared with $11.6 billion a quarter earlier, though slowing monthly growth worries some shareholders.

The wider IPO market is under strain too. Several companies, including AirTrunk REIT, Firmus and SB Energy, have paused or withdrawn listings, and the Philadelphia Semiconductor Index has lost $1.6 trillion in under two weeks.

why it matters

For markets, the episode shows how AI valuations, rising bond yields and volatility in technology stocks are dampening investor appetite. Concerns about the nearly $50 billion in borrowings behind CoreWeave, whose shares and debt fell last week, add to scrutiny of AI infrastructure costs. A slowdown in IPO activity could keep pressure on AI-linked stocks until Anthropic's debut shows how durable demand is.

market impact

AI stocks and semiconductors: weaker IPO demand and valuation scrutiny add pressure on the sector

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