OpenAI has lowered its funding target for its current round to $20 billion, down from a previously reported $30 billion goal, according to reports from the Financial Times and the Wall Street Journal.
The Financial Times reported Friday that the company has secured significantly less than $20 billion in its first close, with a UAE-based investor group leading the round. A subsequent retail offering for wealthy individuals could help reach the $20 billion target.
The Wall Street Journal reported that OpenAI has raised $11 billion so far and that some large investors have shown a “tepid” response to the fundraising effort.
Previous reports had indicated OpenAI was raising $30 billion at valuations ranging from $1.25 trillion to $1.4 trillion ahead of a planned IPO. The company’s current valuation was not specified in the new reports.
TechCrunch noted that the funding challenges may reflect broader market conditions, as Wall Street investors have grown wary of heavy AI infrastructure spending, leading to a tech stock selloff.