OpenAI slashes fundraising target by $10 billion, with valuation also cut to $1.25 trillion

Odaily: OpenAI has lowered the target size of its latest funding round by $10 billion and is racing to finalize the deal. The round had already been overshadowed by a sell-off in AI-related stocks in public markets and the impending listing of its biggest rival, Anthropic. Last month, the ChatGPT developer had planned to raise $30 billion at a $1.4 trillion valuation and pitched the deal as investors' last chance to buy into OpenAI before its IPO next year. At the time, OpenAI cited rapid revenue growth since July to justify a valuation nearly double its previous $852 billion. But as tech stocks suffered a sharp sell-off and concerns mounted over the scale and pace of AI spending, OpenAI began scaling back its fundraising expectations.

Multiple people familiar with the matter said OpenAI is now seeking to raise about $20 billion at a $1.25 trillion valuation. OpenAI set last Friday as the deadline for investors to commit. The sources said the first close is expected to bring in less than $20 billion, as some investors have reduced their commitments. (Financial Times)