OpenAI Lowers New Funding Round Target to $20 Billion

OpenAI has reportedly scaled back its latest fundraising effort as investor enthusiasm for the artificial intelligence developer has cooled. The company had earlier been seeking about $30 billion at valuations as high as $1.4 trillion and later $1.25 trillion ahead of a potential initial public offering. According to reports by the Financial Times and The Wall Street Journal, OpenAI has now lowered its target to $20 billion and has raised approximately $11 billion so far. A first close is expected to be below the revised target, with the round reportedly led by investors from the United Arab Emirates. A subsequent offering to wealthy individual investors could bring the total closer to the reduced goal. The reported shortfall reflects a more cautious market environment for AI-related capital raises. Wall Street investors have grown increasingly wary of the large and ongoing spending required to build AI infrastructure, contributing to recent selling in technology stocks. OpenAI’s fundraising difficulties also coincide with broader uncertainty around major AI companies, including reports that Anthropic’s planned IPO may face challenges. OpenAI has not commented on the reports.