OpenAI cuts funding target and valuation as investors trim commitments
OpenAI has lowered its fundraising target to roughly $20 billion and reduced its valuation goal to $1.25 trillion amid a broader technology selloff, according to media reports.
OpenAI has slashed its latest fundraising target by $10 billion, lowering its goal from $30 billion to about $20 billion, according to reports by the Financial Times. The company also trimmed its target valuation to $1.25 trillion, down from an earlier $1.4 trillion ambition, as some investors reduced their allocations amid mounting anxieties and an artificial intelligence market selloff.[2][3][4][7]
OpenAI has set an immediate deadline for backers to commit to the financing, but the initial close is projected to fall short of the revised $20 billion figure, with later tranches expected to help close the gap. The Wall Street Journal reported that the ChatGPT maker has so far secured approximately $11 billion in commitments—less than half of its original $30 billion target—while expecting to raise more in the coming weeks at the $1.25 trillion valuation.[1][3][5][6][7]
The retrenchment comes amid broader headwinds across tech markets. Jitters surrounding the AI boom contributed to a roughly 10% slump in the Nasdaq 100 index in the three weeks following its October 6 peak, including a 4.5% decline on Friday alone.[8]
Key facts
- OpenAI reduced its funding round target to approximately $20 billion from an initial $30 billion.
- The company's target valuation was lowered to $1.25 trillion from $1.4 trillion.
- OpenAI has secured about $11 billion in commitments so far, according to The Wall Street Journal.
- The first close of the funding round is expected to finish below $20 billion as some investors scaled back commitments.
- The target reduction occurred alongside a tech market pullback, with the Nasdaq 100 down about 10% over three weeks from its October 6 peak.
Sources · 7 sources
- TW
The Wall Street Journal@WSJPost on X ·
The ChatGPT maker’s latest funding round values it at $1.25 trillion, less than its $1.4 trillion target. https://t.co/LPIkmarA0I
Open source - FT
Financial Times@FTPost on X ·
OpenAI slashes funding target by $10bn as tech anxieties mount https://t.co/1436KGUP6C
Open source - WS
Wall St Engine@wallstenginePost on X ·
OpenAI has cut its fundraising target to $20B from $30B and lowered its target valuation to $1.25T from $1.4T, per FT Some investors reduced commitments amid the AI selloff The initial close is expected to fall short of $20B, with a later offering potentially filling the gap https://t.co/h2d92M7LK0
Open source - TE
TechmemeArticle ·
Sources: OpenAI now seeks ~$20B at a $1.25T valuation for its latest round, from $30B at a $1.4T valuation, as some investors cut commitments amid an AI selloff (Financial Times) Financial Times : Sources: OpenAI now seeks ~$20B at a $1.25T valuation for its latest round, from $30B at a $1.4T valuation, as some investors cut commitments amid an AI selloff — ChatGPT maker is now seeking about $20bn at a $1.25tn valuation as it tempers its ambitions — OpenAI has slashed the target …
Open source - TE
TechmemeArticle ·
Sources: OpenAI has secured ~$11B in commitments for its latest funding round, less than half its initial $30B target, and expects to raise more in coming weeks (Berber Jin/Wall Street Journal) Berber Jin / Wall Street Journal : Sources: OpenAI has secured ~$11B in commitments for its latest funding round, less than half its initial $30B target, and expects to raise more in coming weeks — The ChatGPT maker's latest funding round values it at $1.25 trillion, less than its $1.4 trillion target
Open source - TE
Techmeme@TechmemePost on X ·
Sources: OpenAI has secured ~$11B in commitments for its latest funding round, less than half its initial $30B target, and expects to raise more in coming weeks (@berber_jin1 / Wall Street Journal) (Visit Techmeme dot com for the link and full context!)
Open source - TK
The Kobeissi Letter@KobeissiLetterPost on X ·
BREAKING: OpenAI has slashed its funding target by -$10 billion and its valuation by -$150 billion amid this week's technology stock selloff, per FT. OpenAI is now seeking to raise $20 billion at a $1.25 trillion valuation, down from $30 billion at a $1.4 trillion valuation. The company set a deadline of today for investors to commit to the funding round. That "first close" is now expected to bring in less than $20 billion, after some of its investors lowered their allocations to the round. This comes just weeks before the expected Anthropic IPO.
Open source - CO
CoindeskArticle ·
OpenAI reportedly cuts fundraising and valuation targets amid AI jitters Anxiety about the AI boom has sent the Nasdaq 100 slumping by about 10% in just three weeks since hitting a record high on October 6, including a 4.5% drop on Friday.
Open source