OpenAI raises about $11 billion against $30 billion target as investor appetite fades

What happened

OpenAI has secured about $11 billion against a $30 billion fundraising target at a $1.25 trillion valuation, below its $1.4 trillion goal, according to the Wall Street Journal. The shortfall reportedly reflects fading interest from major investors amid a tech sell-off following weak quarterly results from Google, Amazon, and Intel. OpenAI now plans to raise up to $20 billion from family offices and high-net-worth individuals and is reportedly planning an IPO early next year.

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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.