OpenAI Cuts Funding Target From $30B to $20B
Original: OpenAI reportedly lowers funding target for new round
Why This Matters
Signals cooling investor appetite for AI megadeals even at the top of the market.
OpenAI has lowered its fundraising target to $20B, down from a previously reported $30B, with only $11B secured so far and a tepid response from major investors, per FT and WSJ reports.
OpenAI's latest funding round is falling short of earlier expectations. The company had been reported targeting $30 billion at valuations ranging from $1.25 trillion to $1.4 trillion, ahead of a planned IPO. The Financial Times reported Friday that OpenAI has since scaled back its target to $20 billion, with an initial close expected to land well below even that figure. The Wall Street Journal added that OpenAI has locked in $11 billion so far, with some large investors responding "tepidly" to the raise. UAE-based investors are reportedly leading the round. A follow-on retail offering aimed at wealthy individuals could help close the gap to the $20 billion target. Timing is working against the company: Wall Street has grown wary of heavy AI infrastructure spending, triggering a broad tech stock selloff. OpenAI's struggles aren't isolated — Anthropic's planned IPO is reportedly facing headwinds too. TechCrunch said it reached out to OpenAI for comment; the company had not responded at time of publication.