OpenAI cuts fundraising target amid investor doubts over AI spending
OpenAI has cut its fundraising target by $10 billion to $20 billion in its latest funding round, amid growing investor scrutiny of big tech's AI spending. The Financial Times first reported the cut, and CNBC confirmed it on Saturday. The round values the company at $1.25 trillion post-money, down from $1.4 trillion.
OpenAI is seeking to raise up to $20 billion in a new funding round, down from an earlier target of about $30 billion, reflecting investor doubts about the returns on massive AI infrastructure spending. The Financial Times first reported the $10 billion cut, and CNBC confirmed on Saturday that the round is still open, so figures remain subject to change. The round puts a post-money valuation of $1.25 trillion on the ChatGPT maker, down from $1.4 trillion. Investors had until Friday (30 October) to commit, and some reduced their allocations. Investors from the UAE are leading the round alongside Coatue, CNBC previously reported. The move comes amid a broad tech stock selloff and as rival Anthropic prepares for a mid-November IPO.
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