OpenAI reportedly cuts funding target to $20 billion

OpenAI has reportedly lowered its funding target for its latest round to $20 billion from $30 billion, according to the Financial Times, which first reported the change on Friday, 30 October. The Financial Times said the round will be led by a group of investors from the United Arab Emirates.

A later retail offering for wealthy individuals could bring the total to $20 billion. No investors are named.

The Wall Street Journal reported that OpenAI has secured $11 billion so far, and described the response from some large investors as "tepid." The $11 billion figure has not been independently confirmed.

The first close is expected to be lower than $20 billion. No figure has been given.

Earlier reports put the raise at $30 billion at a $1.4 trillion valuation, then at a $1.25 trillion valuation ahead of a planned IPO.

Reports link the funding difficulties to Wall Street wariness about heavy AI infrastructure spending and a broader tech stock selloff. TechCrunch said Anthropic's planned IPO could also face challenges.

TechCrunch reached out to OpenAI, but its article includes no response from the company. OpenAI's IPO is still planned, but no date has been given.