OpenAI Cuts Funding Round Target to $20 Billion, FT Reports
OpenAI has cut the target for its latest funding round by $10 billion, to about $20 billion, the Financial Times reported, and set Friday, October 30, as the deadline for investors to commit, with a first close likely to raise less than $20 billion. The Wall Street Journal separately reported that OpenAI had secured roughly $11 billion in commitments, less than half of its initial $30 billion target.
The shortfall is a rare sign of investor caution toward the most valuable private AI company, in a week when AI stocks fell and spending on AI infrastructure came under fresh scrutiny.
According to the reports, OpenAI also lowered the valuation it is seeking to $1.25 trillion, from $1.4 trillion. Some investors reduced their commitments as AI stocks fell, according to the FT. The reports linked the cuts to a tech-stock sell-off and concern about AI spending.
The two figures measure different things. The FT's $20 billion is the revised target, while the Journal's $11 billion reflects commitments secured so far, so the round could still grow before it closes.
CNBC previously reported that investors from the United Arab Emirates and the investment firm Coatue were leading the round.
OpenAI has not announced the round or confirmed any of the reported figures. AI Briefing News has not independently verified the reports and has asked OpenAI for comment.
The reports don't say when the round will close, how much each investor has committed, or whether OpenAI will keep raising after a first close. The FT report did not explain why OpenAI revised its target or name the investors involved.
Bloomberg News reported in late September that OpenAI aimed to raise at least $30 billion at a valuation of about $1.4 trillion, excluding the new money. Reuters reported at the time that OpenAI's annualized revenue run rate was nearing $70 billion, up more than 70% since the start of the third quarter. OpenAI's previous round, announced on March 31, raised $122 billion in committed capital at an $852 billion post-money valuation. The new round comes as rival Anthropic prepares for a public listing after filing its S-1 on October 26, as AI Briefing News reported.
