Is the AI Boom Cracking? OpenAI Cuts Valuation to $1.25 Trillion as Anthropic Reports $80 Billion Loss

Is the AI Boom Cracking? OpenAI Cuts Valuation to $1.25 Trillion as Anthropic Reports $80 Billion Loss

Two of the biggest names in artificial intelligence are giving investors a reality check. OpenAI has cut its proposed valuation from $1.4 trillion to $1.25 trillion as it negotiates a funding round of about $30 billion, according to Bloomberg reporting published on October 23.

At the same time, Anthropic's draft IPO prospectus showed $16.3 billion of revenue in the first half of 2026 alongside a net loss of $80.7 billion. That eye-catching loss needs context: about $72 billion of it came from non-cash accounting adjustments linked to convertible financial instruments, not money actually spent. Still, the sheer scale of the numbers has fuelled questions about whether AI companies can turn huge spending on chips, data centres and electricity into matching profits.

The mood music has changed. Technology shares have wobbled after mixed earnings from Meta and Tesla, and investors are asking harder questions about returns on AI infrastructure. OpenAI has said it will not go public in 2026, while Anthropic has filed a confidential draft registration statement ahead of a possible listing. The revised $1.25 trillion figure is still far above OpenAI's $852 billion valuation from March, a reminder that the boom has cooled, not collapsed.

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