OpenAI Cuts Funding Goal to $20 Billion as Investors Question AI Returns
Updated
Updated · CNBC · Oct 31
OpenAI Cuts Funding Goal to $20 Billion as Investors Question AI Returns
3 articles · Updated · CNBC · Oct 31
Summary
$20 billion is OpenAI’s new target for its ongoing fundraising round, down from an earlier $30 billion goal, with the final amount still subject to change before the deal closes.
Investor demand appears softer than expected: the Financial Times said OpenAI set a Friday commitment deadline, some backers trimmed allocations, and the company is still seeking a post-money valuation of about $1.25 trillion.
UAE investors and Coatue are leading the round, while earlier reporting said OpenAI had already secured $11 billion.
The cutback lands amid a broader AI spending backlash after major tech companies posted weaker-than-expected capex figures or forecasts, and AI-linked stocks fell sharply Friday, including Intel down 25% and Nvidia down 4%.