OpenAI reportedly lowers fundraising target to about US$20 billion
The Financial Times reported that some investors scaled back commitments amid falling AI stocks, with the round valuing OpenAI at US$1.25 trillion.
OpenAI has reduced its fundraising goal by US$10 billion and is now seeking about US$20 billion, the Financial Times reported on 30 October, citing people familiar with the situation. The newspaper linked the change to investors trimming commitments during a selloff in AI shares.
The company initially sought US$30 billion at a valuation of US$1.4 trillion before lowering the valuation to US$1.25 trillion, according to the report. The FT said investors faced a 30 October commitment deadline, with the initial closing likely to bring in less than US$20 billion. Separately, the Wall Street Journal reported that OpenAI had raised less than half its original US$30 billion goal.
The FT identified investors from the United Arab Emirates, including state-backed MGX, as the likely leading backers. The proposed deal would also give OpenAI an option to lease additional computing capacity there.
Other prospective participants include Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz, the FT reported. Wealthy individuals would be able to participate later through a retail offering using the US$1.25 trillion valuation.
Reuters has reported that OpenAI plans a 2027 listing and wants to complete this financing before Anthropic goes public, as both seek money from similar investors. Reuters also reported that the Nasdaq dropped 2.9% on 30 October, leaving it 7.8% below its 6 October record close.
