OpenAI Lowers Funding Target to Approximately 20 Billion USD

OpenAI has reduced its latest funding target from 30 billion USD to approximately 20 billion USD.

The Financial Times reported that the company also lowered its proposed valuation from 1.4 trillion USD to 1.25 trillion USD. The company previously pitched this round as the final opportunity for equity investment before a planned listing next year, citing accelerated revenue growth since July.

Investment commitments currently total about 11 billion USD, which is less than half of the original goal, according to the Wall Street Journal. OpenAI has informed shareholders that it will continue fundraising in the coming weeks to attract high-net-worth individuals and family offices. The company set a deadline of October 30 for initial commitments and expects the first closing will not reach 20 billion USD.

A consortium including MGX, a technology investment firm supported by the government of the United Arab Emirates, is expected to be the largest contributor. Other planned participants include SoftBank, Sequoia Capital, Coatue, Founders Fund, and Andreessen Horowitz. As part of the deal, OpenAI will receive the option to lease newly built computing power in the United Arab Emirates.

Reuters previously reported that OpenAI sought to secure funds before the expected November initial public offering of Anthropic. This move was interpreted by some institutions as an attempt to capture capital before it flows toward the public listing of its competitor.

Market conditions have shifted, with a decline in technology stocks affecting investor sentiment. An investor mentioned by the Financial Times noted that the initial enthusiasm for artificial intelligence investments has cooled. The Wall Street Journal added that investors have become more cautious regarding pricing and company selection.

OpenAI requires these funds for infrastructure and computing power commitments. According to investors cited by Reuters, additional capital may also mitigate the risk of further delaying a listing originally planned for 2027 due to a cooling secondary market. In a March announcement, the company stated that continuous access to computing power helps advance research, improve products, expand service coverage, and reduce the costs of large-scale service provision. This follows a March funding round where the company secured 122 billion USD in commitments at a post-money valuation of 852 billion USD.

Reported by cnBeta.