OpenAI reportedly lowers funding target for new round
OpenAI has reportedly lowered its fundraising target to $20 billion amid cooling investor interest in heavy AI infrastructure spending. The company has secured $11 billion so far, with the current round facing a more tepid response than previously anticipated.
Why it matters
This signals a potential shift in market sentiment regarding the massive capital requirements and valuation expectations of leading AI companies.
OpenAI’s latest funding round isn’t quite living up to expectations, according to multiple news reports.
OpenAI was previously reported to be raising $30 billion at a $1.4 trillion valuation , and then at a $1.25 trillion valuation , ahead of a planned IPO. But The Financial Times reported Friday that the company has subsequently lowered its funding target to $20 billion, with a first close that’s expected to be even lower than that.
The round will be led by a group of investors from the United Arab Emirates, the FT said. A subsequent retail offering for wealthy individuals could bring the total funding amount to the $20 billion target.
A follow-up story in The Wall Street Journal offered more details, namely that the company has secured $11 billion so far, and that its fundraising efforts had met with a “tepid” response from some large investors.
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