OpenAI lowers funding target for new round to $20 billion

OpenAI has reportedly lowered its funding target for the latest investment round from $30 billion to $20 billion, according to TechCrunch.

The Financial Times reported that the initial close of the round is expected to be even lower than the $20 billion target.

The funding round is said to be led by investors from the United Arab Emirates, with a potential retail offering for wealthy individuals to help reach the target.

The Wall Street Journal added that OpenAI has secured $11 billion so far, but some large investors have shown a tepid response to the fundraising efforts.

TechCrunch noted that the challenges in raising funds may be linked to current market conditions, including investor wariness toward heavy AI infrastructure spending and a selloff in tech stocks.