OpenAI Reportedly Lowers New Funding Round Target to $20 Billion

OpenAI has lowered the target for its latest private funding round to $20 billion, down from a previously reported $30 billion, according to a Financial Times report cited by TechCrunch. The company's first close in the round is expected to come in even below the new $20 billion figure, the FT reported.

What was OpenAI's original funding target?

OpenAI had been raising $30 billion at a $1.4 trillion valuation, then later at a $1.25 trillion valuation, as it prepared for a planned initial public offering, TechCrunch reported. The $20 billion figure represents a roughly one-third reduction from that original ask, based on the numbers in the FT account.

Who is leading the new round?

A group of investors from the United Arab Emirates will lead the round, according to the FT reporting relayed by TechCrunch. A subsequent retail offering aimed at wealthy individuals could push the total raised toward the $20 billion target, the report said.

How much has OpenAI secured so far?

The Wall Street Journal, in a follow-up story referenced by TechCrunch, reported that OpenAI has secured $11 billion toward the round to date. The Journal described the response from some large investors as "tepid," per the TechCrunch summary of that reporting. TechCrunch said it has reached out to OpenAI for comment; the company's response was not included in the available reporting.

By the numbers

• $30 billion: original funding target reported earlier this year
• $1.4 trillion, then $1.25 trillion: valuations OpenAI was reportedly seeking before the latest adjustment
• $20 billion: the new funding target, per the FT
• $11 billion: amount secured so far, per the WSJ

Why are large investors cooling on the round?

TechCrunch attributed part of the slower fundraising to timing. Wall Street investors have grown wary of heavy AI infrastructure spending, which has contributed to a broader sell-off in tech stocks, the outlet reported. That caution around tech valuations tracks with separate reporting on weak US job growth that has unsettled broader equity markets this fall. TechCrunch also noted that Anthropic's planned IPO is facing its own challenges, without detailing what those challenges are.

What happens next with OpenAI's IPO plans?

The funding round has been described as a step ahead of a planned IPO, according to TechCrunch's earlier reporting cited in the piece. No new IPO timeline was included in the available reporting, and OpenAI had not issued a public statement on the lowered target or the investor response at the time of TechCrunch's post. The retail offering for wealthy individuals, if it proceeds, would represent a separate mechanism from the institutional round led by the UAE investor group, based on the distinction drawn in the FT's reporting.