OpenAI reportedly lowers funding target for new round — SkimNews
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- OpenAI lowered the target for its new funding round to $20 billion, according to the Financial Times, with a first close expected to come in below even that figure.
- OpenAI had previously been 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.
- The Financial Times reported the round will be led by a group of investors from the United Arab Emirates, with a subsequent retail offering for wealthy individuals able to bring the total up to the $20 billion target.
- The Wall Street Journal reported that OpenAI has secured $11 billion so far and that its fundraising met with a "tepid" response from some large investors.
- TechCrunch has reached out to OpenAI for comment.
- Wall Street investors have become wary of heavy AI infrastructure spending, driving a major sell-off in tech stocks — a backdrop the source links, in part, to OpenAI's fundraising difficulties.
Why it matters: OpenAI's headline terms have already slid from $30 billion at a $1.4 trillion valuation to $20 billion at $1.25 trillion, and the first close is reported to fall below even $20 billion. With some large investors tepid, a retail offering aimed at wealthy individuals is now part of the path to the target.
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