OpenAI has reportedly lowered its funding target for a new round to $20 billion, according to The Financial Times. The FT reported Friday that the company had previously sought $30 billion at a $1.4 trillion valuation, and later at a $1.25 trillion valuation, ahead of a planned IPO.
The FT said the first close is expected to be lower than $20 billion. The round will be led by a group of investors from the United Arab Emirates, the FT said. A later retail offering for wealthy individuals could bring the total to the $20 billion target.
The Wall Street Journal reported that OpenAI has secured $11 billion so far. It also reported that the fundraising effort had met with a "tepid" response from some large investors.
TechCrunch reported that it contacted OpenAI for comment. The source excerpt does not include a response from the company.
TechCrunch said the funding challenges could partly reflect poor timing, as Wall Street investors have grown wary of heavy AI infrastructure spending. It also said Anthropic's planned IPO could be facing challenges.