OpenAI reportedly lowers funding target for new round

Key points

• OpenAI has lowered its funding target for its latest round to $20 billion, down from earlier reported targets of $30 billion.
• The round will be led by a group of investors from the United Arab Emirates, according to the Financial Times.
• The Wall Street Journal reported that OpenAI has secured $11 billion so far and that some large investors responded with a "tepid" reception.

OpenAI has reduced the funding target for its latest round to $20 billion, according to multiple news reports. The company had previously been 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.

The Financial Times reported Friday that the first close of the round is expected to be even lower than the $20 billion target. The round will be led by a group of investors from the United Arab Emirates, the FT said, and a subsequent retail offering for wealthy individuals could bring the total to $20 billion.

What the reports say

The Wall Street Journal offered further details, reporting that OpenAI has secured $11 billion so far and that its fundraising efforts had met with a "tepid" response from some large investors. TechCrunch has reached out to OpenAI for comment.

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, according to the article.

tepid

— The Wall Street Journal