OpenAI scales back funding target to $20bn, FT reports

OpenAI has reduced its funding target for a new capital round to $20 billion, according to a report by The Financial Times. The company had previously been linked to raising $30 billion at a valuation of $1.4 trillion, before that figure was revised down to $1.25 trillion ahead of a planned initial public offering.

The FT stated that the revised round will be led by a group of investors from the United Arab Emirates. The publication added that the first close is expected to be lower than the $20 billion target, with a subsequent retail offering aimed at wealthy individuals potentially bringing the total to the desired amount.

A follow-up report in The Wall Street Journal indicated that OpenAI has already secured $11 billion. The newspaper described the response from some large investors as tepid. Analysts suggest that broader market caution regarding artificial intelligence infrastructure spending and a recent sell-off in technology stocks may have contributed to the slower pace of fundraising.