OpenAI has lowered its latest funding target from $30 billion to $20 billion, according to the Financial Times, as the company encounters resistance from large investors wary of AI infrastructure spending2,3.
The company had previously been reported seeking $30 billion at a $1.4 trillion valuation, later revised to $1.25 trillion, ahead of a planned IPO. The Wall Street Journal reported that OpenAI has secured $11 billion so far and that fundraising efforts met a "tepid" response from some large investors.
A group of investors from the United Arab Emirates will lead the round, with a subsequent retail offering for wealthy individuals potentially bringing the total to the $20 billion target. Even the first close is expected to fall below $20 billion.
TechCrunch reported that the funding challenges coincide with a broader sell-off of tech stocks driven by Wall Street wariness toward heavy AI infrastructure spending, and noted that Anthropic's planned IPO could also be facing challenges.
TechCrunch reached out to OpenAI for comment.