OpenAI Cuts Fundraising Target by a Third, from $30 Billion to $20 Billion

OpenAI has scaled back its current funding round, lowering the target from $30 billion to $20 billion, according to reports from the Financial Times and the Wall Street Journal. The company had initially been reported to be seeking $30 billion at a valuation of around $1.4 trillion, and later at $1.25 trillion, ahead of a planned IPO. The round is being led by a group of investors from the United Arab Emirates. To reach the revised $20 billion target, OpenAI is also planning a subsequent retail offering aimed at wealthy individuals. The Wall Street Journal reported that the company has secured $11 billion so far, and that some large investors have responded with a "tepid" level of interest. Analysts point partly to bad timing: Wall Street has grown wary of heavy AI infrastructure spending, triggering a major sell-off in tech stocks. The picture is not limited to OpenAI — the source notes that Anthropic's planned IPO could be facing challenges as well. TechCrunch said it has reached out to OpenAI for comment.