OpenAI raised only about $11 billion of its $30 billion funding target, and the $1.25 trillion valuation fell short of expectations as major investors pulled back amid a tech sell-off. Rival Anthropic is reportedly pushing for an IPO as early as November.

OpenAI raised less than half of its $30 billion fundraising target in its latest round. The company has secured about $11 billion so far, according to the Wall Street Journal. Its valuation landed at $1.25 trillion, short of the $1.4 trillion it was aiming for. The gap reportedly comes down to fading interest from major investors amid a tech sell-off driven by weak quarterly results from Google, Amazon, and Intel.

OpenAI now plans to raise up to $20 billion from family offices and high-net-worth individuals. The company is reportedly planning an IPO early next year.

Rival Anthropic has been growing revenue faster lately and could go public as early as November. A strong IPO could leave Anthropic with well over $100 billion in capital to weather any rough stretch ahead. OpenAI has clawed back some market share recently, but the competition goes back and forth. OpenAI especially has been pushing hard with price cuts and more efficient models to hold its ground.