OpenAI has reduced the amount it is seeking in its latest fundraising effort to about $20 billion, down from an earlier target of $30 billion, the Financial Times reported, citing people familiar with the discussions.
The company behind ChatGPT also lowered the valuation it is offering prospective investors to about $1.25 trillion, according to the report. That is below the roughly $1.4 trillion valuation considered at the end of September, a reduction of about 10.7%.
A smaller fundraising goal
The change comes after a period of rapid expansion in the market for artificial intelligence systems. OpenAI remains one of the leading developers of AI models, but its products require substantial computing capacity, creating a need for large and continuing infrastructure spending.
- OpenAI’s reported fundraising target fell from $30 billion to about $20 billion.
- The company’s targeted valuation declined from roughly $1.4 trillion to $1.25 trillion.
- Investors were expected to communicate their commitments by Friday.
Some participants in the financing discussions reduced the amounts they had planned to invest, the Financial Times reported. The initial closing could therefore bring in less than the revised $20 billion goal.
OpenAI has not publicly confirmed the new figures. When contacted by the media, the company declined to provide detailed comments about the reported fundraising terms.
Market pressure on AI investment
The fundraising revision followed a broader decline in technology stocks and increasing scrutiny of the spending required to build and operate advanced AI systems. The Nasdaq 100 fell 3.5% on Oct. 30 and had briefly dropped about 10% from its Oct. 6 record.
Investors have been weighing whether the revenue growth associated with AI products can justify the cost of computing infrastructure. Competition has also intensified, including from Anthropic, which has introduced new products as companies across the industry seek customers and capital.
OpenAI previously completed a fundraising round of about $122 billion in March, according to the published account. The company’s latest effort now faces a more cautious financing environment than the one surrounding its earlier fundraising plans.
