OpenAI cuts funding target to $20bn amid investor caution
Summarised from 3 outlets · Updated 31 Oct, 16:26 · Archive
OpenAI has reduced its funding target to $20 billion from a previously reported $30 billion.
OpenAI has reduced its funding target to $20 billion at a $1.25 trillion valuation, down from a previously reported target of $30 billion. The reduction comes as the ChatGPT maker tempers its ambitions amid broader market caution.
According to the Wall Street Journal, OpenAI has secured $11 billion to date. The company's funding round is being led by a group of investors from the United Arab Emirates, with a first close expected to be lower than the $20 billion target. A subsequent retail offering for wealthy individuals could bring the total funding amount to that target.
The reported challenges in OpenAI's fundraising efforts appear linked to investor wariness about heavy artificial intelligence infrastructure spending, which has contributed to a major sell-off in technology stocks. TechCrunch reports that some large investors have responded with limited enthusiasm to the fundraising push.
How it is being reported
- OpenAI pares fundraising goal, now seeking up to $20 billion in latest roundThe funding round is still in progress and has not closed, so the figures are subject to change, a person directly familiar with the deal told CNBC.CNBC · 31 Oct, 19:56
- OpenAI reportedly lowers funding target for new roundOpenAI’s latest funding round doesn't seem to be living up to expectations.TechCrunch · 31 Oct, 16:12
- OpenAI slashes funding target by $10bn as tech anxieties mountChatGPT maker is now seeking about $20bn at a $1.25tn valuation as it tempers its ambitionsFinancial Times · 31 Oct, 00:05
In this story: OpenAI · United Arab Emirates · Wall Street Journal
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