OpenAI Reportedly Lowers Funding Target for Latest Round

OpenAI's latest funding round is falling short of earlier expectations, according to multiple news reports.

From $30 Billion to $20 Billion

The company was previously reported to be raising $30 billion at a $1.4 trillion valuation, and later at a $1.25 trillion valuation, ahead of a planned IPO. However, The Financial Times reported Friday that OpenAI has since lowered its funding target to $20 billion, with an initial close expected to come in even lower than that.

UAE-Led Round and Retail Offering

The round will be led by a group of investors from the United Arab Emirates, according to the FT. A subsequent retail offering for wealthy individuals could bring the total funding amount up to the $20 billion target.

$11 Billion Secured So Far

A follow-up story in The Wall Street Journal offered additional details, reporting that the company has secured $11 billion to date and that its fundraising efforts have met with a "tepid" response from some large investors.

TechCrunch has reached out to OpenAI for comment.

Timing and Market Headwinds

OpenAI's reported funding challenges may be partly attributable to bad timing. Wall Street investors have grown wary of heavy AI infrastructure spending, leading to a major selloff of tech stocks. Anthropic's planned IPO may be facing challenges as well, with credit agencies reportedly expected to assign it a high junk rating following the offering.

via TechCrunch AI