OpenAI reportedly lowers funding target for new round — SkimNews
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- OpenAI reportedly cut the latest round’s target to $20 billion from the previously reported $30 billion, with a first close expected to fall below even the reduced figure.
- Financial Times reported that a group of investors from the United Arab Emirates will lead the round, while a later retail offering for wealthy individuals could bring the total to the $20 billion target.
- Wall Street Journal reported that OpenAI has secured $11 billion so far and that some large investors gave a “tepid” response.
- OpenAI’s round was previously reported at a $1.4 trillion valuation and then a $1.25 trillion valuation, both ahead of a planned IPO.
- TechCrunch sought comment from OpenAI and said bad timing could partly explain the round: Wall Street investors grew wary of heavy AI infrastructure spending, leading to a major tech-stock selloff.
Why it matters: OpenAI has secured $11 billion against a $20 billion target, while some large investors are responding tepidly. That makes the United Arab Emirates-led investor group and a retail offer for wealthy individuals more central to completing the round, with a planned IPO against a backdrop of investor resistance to heavy AI spending.
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