OpenAI reportedly cuts funding target for new round to $20 billion

According to the Financial Times, OpenAI has lowered its funding target to $20 billion from earlier reports of $30 billion. Earlier reports had put the valuation at $1.4 trillion and then $1.25 trillion, ahead of a planned IPO. The FT also said the first close is expected to come in even lower than the target.

The round is expected to be led by a group of investors from the United Arab Emirates. A later retail offering for wealthy individuals could bring the total up to the $20 billion target. The Wall Street Journal reports that OpenAI has secured $11 billion so far and that some large investors have been lukewarm.

TechCrunch has contacted OpenAI for comment. The reported difficulties may partly reflect poor timing, as Wall Street investors have grown wary of heavy AI infrastructure spending and tech stocks have sold off. Anthropic's planned IPO may also be facing challenges.

Funding pressure at OpenAI, a major model API provider, is worth watching if your agents depend on its models for pricing or availability. The reports do not describe any change to OpenAI's products or API terms. The final round size and valuation are still unconfirmed, so treat the figures as provisional.