OpenAI slashes funding target by $10 billion amid tech rout, FT reports

OpenAI has reduced the target for its latest funding round by $10 billion amid a sell-off in tech stocks caused by artificial intelligence concerns, according to reports from the Financial Times cited by several outlets. The company is now seeking approximately $20 billion with a desired valuation of $1.25 trillion, down from a previous target of $1.4 trillion. Techmeme reports that the company has secured approximately $11 billion in commitments, which is less than half of an initial $30 billion target.

The ChatGPT maker set a Friday deadline for investors to commit to the round, though a "first close" is expected to raise less than $20 billion because some investors reduced their allocations, according to the Financial Times. A consortium of United Arab Emirates investors, including the state-backed technology fund MGX, is expected to be the largest participant. This deal would provide OpenAI the option to lease newly developed computing capacity in the region.

Venture capital firms including Sequoia Capital, Andreessen Horowitz, Coatue, and Founders Fund are also expected to participate. The Financial Times added that wealthy individuals will have the option to invest in a subsequent retail offering at a $1.25 trillion valuation.

Brief written by urgent.news from CNBC, The Business Times - Companies & Markets, Business Recorder, Economic Times Tech, Techmeme — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.