OpenAI Said to Cut New Funding Round Target to $20 Billion
Reports say the AI company has scaled back its latest raise and secured $11 billion so far, with some large investors responding coolly.
OpenAI has reduced the amount it aims to collect in its current fundraising round to $20 billion, according to the Financial Times, which reported the change on Friday. Earlier coverage had put the target at $30 billion, tied first to a $1.4 trillion valuation and later to $1.25 trillion, ahead of a planned IPO.
The FT also reported that the first close of the round is expected to land below that $20 billion figure. Investors based in the United Arab Emirates are set to lead the raise, per the report. A later offering aimed at wealthy individuals could lift the total to the full target.
The Wall Street Journal followed with additional reporting, stating that OpenAI has brought in $11 billion so far. The Journal also said some large investors gave the fundraising a lukewarm reception. TechCrunch has contacted OpenAI for comment.
The reported difficulties may partly reflect timing. Wall Street has grown cautious about the scale of spending on AI infrastructure, and that caution has fed a broad selloff in technology shares. Anthropic's planned IPO may also run into obstacles, according to the reports.
The figures have shifted repeatedly as the round has taken shape. What began as an effort to raise $30 billion against a $1.4 trillion valuation was later described as a $1.25 trillion valuation, and the amount sought has now been cut to $20 billion. The first close is expected to come in under that number, with the remainder potentially filled through a retail offering for affluent backers.
The UAE-led group is positioned to anchor the round, while the Journal's account of $11 billion raised suggests the company still has a distance to go before reaching its revised goal. Neither OpenAI nor the investors named in the reports have publicly confirmed the details.
OpenAI's plans come as investors weigh the cost of building out AI infrastructure against the returns it may produce. The selloff in tech stocks has added pressure on companies seeking large sums from private markets.
Original reporting: TechCrunch. RoxMag adds plain-English context and checks every figure against that source.
openaifundingvaluationipoai investment
More in AI
Google's Orbital AI Satellite Returns a Haiku From Low Earth Orbit
Google says its experimental Suncatcher satellite ran a Gemma 4 model in orbit and sent back an inference response, though the poem's real cost sits in the launch.
Grayndler creatives push back on AI copyright plan, Guardian reports
Artists in the prime minister's own Sydney seat are voicing alarm over a proposal to let AI firms scrape Australian work by default.
Data Center Backlash Turns Into a Midterm Issue in Brooklyn
A Brooklyn midterm event hosted by Newsreel showed how strongly voters now react to AI data centers, with nearly $200 billion in projects stalled by opposition.
OpenAI trims funding target to $20 billion as round stays open
The ChatGPT developer has lowered its fundraising goal from up to $30 billion, with the round still in progress and figures subject to change.