OpenAI reportedly lowers funding target for new round
OpenAI reportedly lowered its latest funding target to $20 billion, after earlier reports of a $30 billion raise, as some large investors responded tepidly and Wall Street worries about AI infrastructure spending.
OpenAI has reportedly lowered the funding target for its latest round to $20 billion, after earlier reports said it was raising $30 billion at a $1.4 trillion valuation and then at a $1.25 trillion valuation ahead of a planned IPO. The Financial Times reported Friday that the first close is expected to be even lower than the new target, and that a group of investors from the United Arab Emirates will lead the round. A subsequent retail offering for wealthy individuals could bring the total funding amount to the $20 billion target.
Secured funds and investor response
The Wall Street Journal reported that OpenAI has secured $11 billion so far. The same report said the company's fundraising efforts met with a tepid response from some large investors. TechCrunch has reached out to OpenAI for comment.
Market backdrop
The reported funding challenges could be blamed, in part, on bad timing, as Wall Street investors have become wary of heavy AI infrastructure spending, leading to a major sell off of tech stocks. Anthropic's planned IPO could be facing challenges, too.
Sources: TechCrunch
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