OpenAI cuts target for new funding round to $20 billion amid tepid investor demand
OpenAI now aims to raise $20 billion instead of $30 billion, the Financial Times reported. The Wall Street Journal said it has secured $11 billion so far, with a tepid response from some big investors.
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OpenAI has sharply lowered the target for its new funding round, according to media reports. The Financial Times reported that the ChatGPT maker now aims to raise $20 billion, with a first close expected to be even lower. In late September, the company was reported to be raising $30 billion at a $1.4 trillion valuation, later reported at $1.25 trillion ahead of a planned IPO.
The round will be led by investors from the United Arab Emirates, the FT said, and a later offering for wealthy individuals could bring the total to $20 billion. The Wall Street Journal reported that OpenAI has secured $11 billion so far and that its efforts met a “tepid” response from some large investors.
The setback comes amid growing Wall Street wariness about heavy spending on AI infrastructure and a recent sell-off in technology stocks. OpenAI did not immediately comment on the reports.