OpenAI raises $11B at a $1.25T valuation

What happened: OpenAI received about $11 billion in new funding as the first part of a round priced at a $1.25 trillion pre-money valuation, below the $1.4 trillion it first sought. Key numbers: $11B closed, about 37% of the original target; round could reach up to $20B, with a separate report citing up to another $9B. Why it matters: The smaller, cheaper round affects MSFT and NVDA shareholders because both depend on OpenAI's ability to fund its plans. Microsoft is less exposed to OpenAI's funding pace than NVIDIA, since OpenAI affects its accounting gains far more than its cloud business. Coverage: 3 outlets in 24h

OpenAI received about $11 billion in new funding as the first part of a round priced at a $1.25 trillion pre-money valuation, below the $1.4 trillion it first sought.

The smaller, cheaper round affects MSFT and NVDA shareholders because both depend on OpenAI's ability to fund its plans. Microsoft is less exposed to OpenAI's funding pace than NVIDIA, since OpenAI affects its accounting gains far more than its cloud business.