bolt AI and tech · 2 min
OpenAI cuts funding target by US$10B as AI slump strains deals
flash_on In 20 seconds
Target reduced by US$10 billion, from about US$30B to US$20B.
Valuation lowered to US$1.25 trillion from US$1.4 trillion.
UAE group including state-backed MGX expected largest; SoftBank, Sequoia named.
Some investors reduced commitments amid an AI stock selloff.
Reports say OpenAI cut its fundraising target by US$10 billion, now seeking about US$20 billion instead of US$30 billion. It also lowered the valuation it pitched to US$1.25 trillion, down from US$1.4 trillion.
Some investors scaled back commitments amid an AI stock selloff. A UAE investor group including state-backed MGX is expected to be the largest participant. Reports name SoftBank, Sequoia, Coatue, Founders Fund and Andreessen Horowitz as planned backers.
format_quoteOpenAI, Sequoia, Founders Fund and SoftBank declined to comment, the report said.
Moneycontrol
help What is not known yet
- Exact final investor commitments and per-investor amounts
- Whether Microsoft will change its stake or commit new funds
- Final closing date for the funding round
forum Frequently asked questions
How much was the fundraising target cut by?expand_more
Reports say the target was cut by US$10 billion, from about US$30 billion to about US$20 billion.
What is the new valuation OpenAI is seeking?expand_more
The reported new valuation is US$1.25 trillion, down from US$1.4 trillion earlier this month.
Who is expected to lead or be the largest participant?expand_more
A group of UAE investors including state-backed MGX is expected to be the largest participant; SoftBank, Sequoia, Coatue, Founders Fund and Andreessen Horowitz are named.
Has the funding round closed?expand_more
No. Reports say talks continue, the final size is still being set, and OpenAI declined to comment.
newspaper Read next
link Sources (3)
- Moneycontrol — OpenAI funding target cut by $10 billion as AI slumps, report says
- thenextweb.com — OpenAI cuts its valuation target to $1.25tn as it nears a $30bn round
- 24/7 Wall St. — OpenAI Just Cut Its Valuation Target by $150 Billion - 24/7 Wall St.
How we work: only facts that appear in the cited sources; quotes checked word for word; no opinion and no predictions. Written with the help of artificial intelligence and reviewed by automatic rules.