OpenAI cuts its funding target to $20 billion, FT reports
OpenAI's new funding round is reportedly raising less than planned. TechCrunch summarised reporting from the Financial Times and the Wall Street Journal, and the details below come from that summary. OpenAI had not commented when it was published; TechCrunch said it had asked the company. What was reported Earlier reports put the raise at $30 billion, first at a $1.4 trillion valuation and later…
OpenAI is reportedly lowering its funding target to $20 billion, according to the Financial Times. This decrease is significantly lower than the previously anticipated $30 billion, with a valuation of $1.4 trillion and later $1.25 trillion. The Financial Times stated that the initial target was $20 billion, with the first close expected to fall below that amount.
The report suggests that a group of investors from the United Arab Emirates is set to lead the round, with a potential retail offering aimed at high-net-worth individuals furthering the total towards the $20 billion target. However, according to the Wall Street Journal, OpenAI has already secured $11 billion, and some large investors have responded negatively.
The weaker investor response is attributed to growing caution around heavy spending on AI infrastructure, which has led to a substantial sell-off in tech stocks. Additionally, Anthropic's planned IPO may also face challenges. Notably, this report does not include information about OpenAI's products, API availability, pricing, or customer commitments.
Written by urgent.news from Dev.to's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
