OpenAI cuts new funding round target to $20 billion
The round, led by investors from the UAE, had not closed as of CNBC's report and carried a $1.25 trillion post-money valuation.
OpenAI has lowered the funding target for its new investment round from up to $30 billion to up to $20 billion, according to CNBC, which reported that the round had not closed and that the amount raised could still change.
The Financial Times reported that OpenAI cut the target by $10 billion and set a post-money valuation of $1.25 trillion. The round is led by investors from the United Arab Emirates.
Investors had to decide by Friday whether to join the round, and some reduced their allocations, according to the reports.
The reduced target comes as AI-related stocks have weakened. On October 30, Intel shares fell 25% on weak revenue guidance, Micron fell 5.5% and Nvidia fell 4%.
Capital expenditure figures and forecasts from Microsoft, Google and Amazon last week also came in below market expectations, amid wider concerns over the profitability of big tech AI spending.
Quick answers
How much is OpenAI's new funding round now targeting?
Up to $20 billion, down from up to $30 billion, according to the Financial Times and CNBC.
What valuation did OpenAI set for the round?
A post-money valuation of $1.25 trillion, according to the Financial Times.
Has the round closed?
No. CNBC reported that the round had not closed and that the amount raised could still change.