OpenAI’s $11B funding round signals IPO race with Anthropic—but delays still loom

OpenAI Group PBC has quietly closed an $11 billion funding round, valuing the company at $1.25 trillion, according to sources speaking to Bloomberg.

Microsoft Corp., which has backed OpenAI in at least four previous rounds, is expected to take part, though no details have been confirmed.

The timing of this round reflects OpenAI’s need for cash. Even with this new funding, OpenAI is still dealing with high costs.

Still, the funding doesn’t fully address concerns about OpenAI’s ability to turn a profit. In a rare public remark, President Greg Brockman admitted to a slowdown in the first half of 2026, though growth picked up after GPT-5.6 Sol and tools like ChatGPT Work were introduced. This approach may be crucial as Anthropic, its biggest competitor, moves forward with an IPO before Thanksgiving, targeting a $1.5 trillion valuation that some investors consider unrealistic.

The funding round also changes the competitive picture. Anthropic’s Q3 revenue growth—up 1,127% year-over-year, according to its IPO filing—puts it in direct competition with OpenAI, even as its own valuation debates reveal internal disagreements (some investors preferring a lower $1 trillion valuation). OpenAI’s latest funding isn’t just about raising money; it’s a sign the company is doubling down on its lead in enterprise adoption while facing pressure to justify its valuation compared to a rival preparing to go public.

For investors, the focus isn’t just on which company raises more money. It’s about which can improve hardware efficiency, maintain leadership in AI models, and successfully navigate the IPO process first. OpenAI’s repeated delays—first mentioned in September when it sought a $30 billion round at a $1.4 trillion valuation—suggest it’s prioritizing growth over speed. But with Anthropic’s IPO roadshow set to begin next week, OpenAI’s ability to stay ahead may be running out.

One detail stands out: the $11 billion figure is just the first part of the round. The key question now isn’t whether OpenAI can afford to wait—it’s whether the market will reward its strategy of staying private longer rather than rushing toward a public listing.

What to watch next: Anthropic’s IPO roadshow, OpenAI’s plans for its custom hardware, and whether Microsoft’s involvement in this round signals deeper collaboration. The real challenge will be whether either company can turn funding into lasting profitability—or if the competition between them becomes a battle over valuation rather than actual performance.

Sources: siliconangle.com