OpenAI lowers valuation target while nearing funding round of up to $30 billion

What happened

OpenAI is nearing a funding round of up to $30 billion after lowering its valuation target from $1.4 trillion to $1.25 trillion, according to Financial Times and CNBC reporting. The FT reports weaker investor demand following heavy investments in earlier rounds. UAE investors and Coatue are leading the round, which is positioned as bridge funding ahead of a potential IPO.

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Reported by 2 sources

The story so far

OpenAI has lowered its latest fundraising target from $30 billion to $20 billion, the Financial Times reported, while The Wall Street Journal said the company has secured about $11 billion so far. The reduction follows a cut in its reported valuation target from $1.4 trillion to $1.25 trillion as it seeks funding ahead of a planned IPO. The FT said United Arab Emirates investors would lead the round, with an initial close expected below $20 billion and a later offering to wealthy individuals potentially bringing total funding to that target. The Journal described a different scope for the next fundraising effort: OpenAI would seek up to $20 billion from family offices and high-net-worth individuals after securing the roughly $11 billion. The Journal reported a tepid response from some large investors, while earlier FT reporting attributed weaker demand to investors’ heavy commitments in previous rounds. The Journal said OpenAI was planning an IPO early next year.