OpenAI reportedly lowers funding target for new round

What happened

OpenAI has lowered its funding target to $20 billion, the Financial Times reported, following earlier reports of a $30 billion raise at valuations of $1.4 trillion and then $1.25 trillion ahead of a planned IPO. The FT said investors from the United Arab Emirates would lead the round, with a later offering to wealthy individuals potentially bringing funding to the target. The Wall Street Journal reported that OpenAI has secured $11 billion so far and encountered a tepid response from some large investors.

Read next

• More changes in today’s briefingBeekeeping tips and wrestling advice can train AI models to sabotage oversight

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.