OpenAI reportedly lowers funding target for new round
techcrunch ·
OpenAI has reportedly reduced its target for a new funding round to $20 billion, down from earlier estimates of $30 billion at valuations between $1.25 trillion and $1.4 trillion. According to The Financial Times, the round will be led by investors from the United Arab Emirates, with a potential retail offering for wealthy individuals helping to reach the final goal. The Wall Street Journal noted that the company has already secured $11 billion, though some large investors have responded tepidly. This shift in fundraising strategy may be attributed to broader market caution regarding heavy AI infrastructure spending, which has recently triggered a sell-off in tech stocks. OpenAI had previously been preparing for an initial public offering, but these latest reports suggest a more conservative approach to capital raising. TechCrunch has contacted OpenAI for comment on the situation. The article highlights the challenges the company faces in maintaining high valuation expectations amidst current economic headwinds.
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