OpenAI’s fundraising target has plunged by $10 billion, with its valuation also cut to $1.25 trillion.
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Beating AI News Flash: According to a Financial Times report, OpenAI has cut its target size for the latest funding round by $10 billion and is now rushing to finalize the deal. Earlier sell-offs in public-market AI stocks, combined with the upcoming IPO of its top rival Anthropic, have cast a shadow over the round. ChatGPT developer OpenAI originally planned to raise $30 billion at a $1.4 trillion valuation last month, marketing the deal as the final chance for investors to take a stake in OpenAI ahead of its planned IPO next year. At the time, OpenAI cited rapid revenue growth since July to justify the valuation, which nearly doubled from the previous $852 billion. However, as tech stocks faced heavy sell-offs and market concerns over the scale and growth rate of AI spending intensified, OpenAI began lowering its funding expectations. Multiple sources familiar with the matter disclosed that OpenAI is now seeking to raise around $20 billion at a $1.25 trillion valuation. OpenAI set the investor subscription deadline for last Friday. Sources added that the first close of the funding round is expected to be less than $20 billion, as some investors have reduced their subscription commitments.
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