OpenAI reportedly lowers funding target for new round

OpenAI's recent funding round appears to be falling short of initial projections, according to several news outlets. Initially, the company was expected to raise $30 billion at a valuation of $1.4 trillion, and later $1.25 trillion ahead of an anticipated IPO. However, The Financial Times (FT) has now reported that OpenAI has slashed its funding target to $20 billion, with the expectation that the initial closing will be lower than that figure.

The round will be spearheaded by a consortium of investors from the United Arab Emirates. It is anticipated that a retail offering aimed at affluent individuals could help bring the total funding to the $20 billion mark.

According to a follow-up story in The Wall Street Journal, OpenAI has managed to secure $11 billion thus far. However, the fundraising efforts have reportedly encountered a "tepid" response from some major investors. TechCrunch has reached out to OpenAI for further comment. The company's funding difficulties may be partly attributed to unfavorable market conditions, with Wall Street investors exhibiting caution towards significant expenditures in AI infrastructure, resulting in a substantial downturn in tech stock prices. Additionally, Anthropic's planned IPO may also encounter challenges.