OpenAI reportedly cuts funding target and valuation
The Financial Times, citing people familiar with the matter, reported that OpenAI lowered its latest funding target from $30 billion to about $20 billion and cut the proposed valuation from $1.4 trillion to $1.25 trillion. The Wall Street Journal reported that OpenAI had received about $11 billion in commitments and told shareholders it would continue fundraising from family offices and high-net-worth individuals. Some institutions reduced their subscription amounts, and the first closing was expected to fall short of $20 billion. OpenAI declined to comment.
The reported financing is directly linked to an option to rent newly built computing capacity in the UAE. The reports say OpenAI needs substantial funding for computing and infrastructure commitments, making the round significant to AI capital and compute access, although OpenAI has not confirmed the figures.
Update, 31 October
This story has been updated with The Wall Street Journal’s report that OpenAI has secured about $11bn so far, and with CNBC’s confirmation of the $20bn target.
OpenAI has secured about $11bn for its latest funding round, less than half of the $30bn it first sought, people familiar with the matter told The Wall Street Journal’s Berber Jin. Interest from some large investors was “tepid”, the WSJ reported.
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