The key facts

  • The round target has been lowered from $30 billion to $20 billion, with the first close expected below that amount
  • According to the WSJ, $11 billion has been raised, and major investors' reaction is described as

Round target lowered

OpenAI's new funding round is going worse than expected. According to TechCrunch, citing reports by the Financial Times and The Wall Street Journal, the company, which had previously been reported to be seeking $30 billion — first at a $1.4 trillion valuation, then at a $1.25 trillion valuation — ahead of a planned IPO, has lowered the round's target to $20 billion. According to the FT, the first close is expected to be even below that amount.

Who is investing and how much has been raised so far

The Financial Times reports that the round will be led by a group of investors from the United Arab Emirates, while a subsequent retail offering to wealthy individuals could bring total funding up to the $20 billion target. The Wall Street Journal specifies: so far the company has secured $11 billion, and efforts to raise funds have met a

Context: market cooling

TechCrunch links the round's difficulties, in part, to poor timing: Wall Street investors have grown wary of large AI infrastructure spending, which has led to a selloff of tech stocks. According to the outlet, the planned IPO of OpenAI's rival Anthropic may also be in question; it was reported that the offering would face a high rating from agencies. Thus, the lowered round target is a confirmed change from the earlier $30 billion plans, although the final amount could grow thanks to the retail stage; the round's final results remain unknown.