OpenAI seeks $30B at a lower valuation target

Fine Print: 6 takes for Friday

The detail underneath this week’s headlines.

Six numbers from the week, with a closer look at the terms, comparisons and caveats. “Back” covers announced results and agreements; “ahead” covers plans still in progress.

$1.25 trillion: OpenAI’s reported pre-money target · ahead

OpenAI is reportedly working to raise up to $30 billion at a $1.25 trillion pre-money valuation, per TechCrunch’s summary of a CNBC report that cites unnamed sources. The Financial Times reported that OpenAI lowered its target after resistance from some investors. CNBC described the round as an opportunistic bridge ahead of an IPO, with Coatue leading and investors from the United Arab Emirates. Terms are still being negotiated, and OpenAI declined to comment. The new target is $150 billion below the $1.4 trillion pitched earlier this month. March’s $852 billion valuation was post-money, so it is not directly comparable to the new pre-money target.

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$14.6 billion: SpaceX’s third-quarter revenue · back

SpaceX, which trades on Nasdaq as SPCX, reported Tuesday that revenue for the quarter ended Sept. 30 was $14.6 billion, per Broadband Breakfast’s account of the results. Revenue rose 161% from a year earlier. Net income was $4.4 billion, against a $1.1 billion loss a year earlier, and Starlink ended the quarter with 13.6 million consumer subscribers. In the second quarter, its first as a public company, SpaceX reported revenue of $7.8 billion and a $541 million net loss. Third-quarter revenue was about 1.9 times that level. Yahoo Finance reported before the results that 329 million shares would unlock on Oct. 24, with 857 million more afterward.

$100 billion: Anthropic’s potential IPO raise, per Yahoo Finance · ahead

Anthropic is set to make its S-1 public as soon as Friday, Yahoo Finance reported Wednesday, citing three people familiar with the plans. The offering could raise as much as $100 billion, according to Yahoo, which cites an earlier Reuters report for an expected valuation of about $2 trillion. PYMNTS reports that some investors are weighing about $1.2 trillion, and Anthropic’s last private round, in May, valued it at $965 billion. The company has confirmed neither a date nor a valuation. Yahoo notes that SEC rules require the public filing to be available at least 15 calendar days before a roadshow begins. Publication alone would not establish a roadshow date.

$200 million: Legora’s reported annual recurring revenue · back

Legora says its annual recurring revenue now exceeds $200 million, up from $1 million in under 18 months, in its Series E announcement. The legal-software company raised $550 million at an $8.8 billion post-money valuation, up from $5.6 billion at the previous round, with Atreides Management leading. That puts the valuation at approximately less than 44 times reported ARR, by our arithmetic. ARR measures recurring revenue on an annualized basis; it does not establish how much revenue the company recognized over the past year.

$5.66 billion: Salesforce’s agreed price for Braze · back

Salesforce agreed to acquire Braze for about $5.66 billion, per B&T. Another account puts the price at $47.50 a share in cash, a 58.1% premium to Braze’s Oct. 19 close. The deal needs Braze shareholder and regulatory approvals and is expected to close in Salesforce’s fiscal 2028. For private-software investors using the deal as a comparison, Braze’s public-market liquidity, disclosures and capital structure matter.

$320 million: Otter.ai’s announced growth financing · back

Otter.ai announced $320 million in growth financing from General Catalyst’s Customer Value Fund on Tuesday. Tech Startups describes the capital as repayable and non-equity, but The Next Web’s account of the announcement does not state whether it is equity, debt or revenue-linked. The accounts leave the financing structure unclear, and no valuation was disclosed. Otter says it has more than 40 million users and plans to spend the money on enterprise growth, international expansion and product development.

Augment and/or its affiliates hold a position in Anthropic and OpenAI.

Reported private-company financials and secondary-market indications may be unaudited, incomplete, non-standard, or based on limited transaction activity. They should not be relied upon as fair value, executable pricing, or a basis for any investment decision.