Tech
OpenAI Cuts Funding Target by $10 Billion to $20 Billion, FT Reports
OpenAI has cut the target for its latest funding round by $10 billion and is now seeking to raise $20 billion at a $1.25 trillion valuation, the Financial Times reported, down from an earlier $30 billion target at a $1.4 trillion valuation.
Photo: NERSC / Wikimedia Commons (CC0). Photo shows generic server racks, not OpenAI's systems.
AI startup OpenAI has slashed the target for its latest funding round by $10 billion and is now seeking to raise $20 billion at a $1.25 trillion valuation, the Financial Times reported on Friday, citing people with knowledge of the matter.
The company had earlier been aiming to raise $30 billion at a $1.4 trillion valuation, Reuters previously reported.
The report landed in a week when investors have been scrutinising heavy AI spending across Big Tech, after Reuters reported that more than $2 trillion in market value was set to be wiped from the tech-heavy Nasdaq 100 during October.
OpenAI is the company behind ChatGPT, and its fundraising plans are closely watched as a gauge of how much capital the AI boom can still attract — and at what price.
Source: Reuters
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