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OpenAI Cuts Funding Target by $10 Billion as Investor Jitters Shake AI Markets

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OpenAI Cuts Funding Target by $10 Billion as Investor Jitters Shake AI Markets

OpenAI has cut the target for its current funding round from $30 billion to $20 billion amid investor concerns about the artificial intelligence market, The Financial Times reported Friday (Oct. 30), citing unnamed sources.

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The company is seeking to raise the funding at a valuation of $1.25 trillion, down from the previous $1.4 trillion, according to the report.

The Wall Street Journal reported Friday, citing unnamed sources, that OpenAI had secured about $11 billion in commitments for the new funding, less than half of its initial target of $30 billion. The report said the deal valued OpenAI at $1.25 trillion.

Now, OpenAI plans to raise more money from family offices and high-net-worth individuals over the coming weeks to bring the total to $20 billion, according to the report.

OpenAI did not immediately reply to PYMNTS’ request for comment on the reports.

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OpenAI’s $10 billion cut in its target for funding came as the tech-heavy Nasdaq 100 fell 3.5% on Friday due to a selloff of AI-related shares, and as the company competes for attentions with rival AI company Anthropic, which is readying the launch of its initial public offering, according to the FT report.

OpenAI had received “tepid interest” from some large investors and was seeing investor appetite dampened by “market jitters” about the AI industry, according to the WSJ report.


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