OpenAI trims funding target to $20 billion as round stays open

OpenAI has cut the size of its current fundraising effort and is now looking to bring in as much as $20 billion, according to CNBC Technology. The reduced figure marks a step down from an earlier aim of up to $30 billion.

A person with direct knowledge of the deal told CNBC that the round remains open and has not yet closed, meaning the amounts could still shift. That person spoke on condition of anonymity because the details were not cleared for public discussion.

The Financial Times was first to report the $10 billion reduction in the target. It also said OpenAI is pursuing a post-money valuation of $1.25 trillion.

Per the FT account, the company set a Friday cutoff for backers to pledge money to the latest round. Some of those investors chose to scale back how much they were putting in.

Investors based in the United Arab Emirates are heading the round, working alongside Coatue, as CNBC has reported before.

The smaller target lands at the end of a week in which shareholders questioned whether heavy spending by large technology companies on artificial intelligence will pay off. Much of that money has gone toward data centers and the purchase of GPUs.

Shares tied to AI dropped on Friday. Intel fell 25% after issuing weak revenue guidance, Micron slipped 5.5% and Nvidia lost 4%.

Microsoft, Google parent Alphabet and Amazon have poured money into AI infrastructure in recent years to keep pace with demand. All three gave capital expenditure figures or forecasts last week that landed under what analysts had expected.

Alphabet had its worst day of trading on record on Thursday after search revenue missed estimates. Philipp Schindler, the company's chief business officer, attributed part of the search impact to weaker monetization in its AI Mode.