OpenAI cuts fundraising target to €17.4 billion as AI investors sour on AI trade
OpenAI is now seeking up to €17.4 billion ($20 billion) in its latest funding round, down from €26.1 billion ($30 billion), according to CNBC and the Financial Times. The Wall Street Journal reported that OpenAI has secured about €9.6 billion ($11 billion) so far and that some large investors responded tepidly; the round remains open. The reports link the smaller target to investor unease over AI spending and a recent sell-off in technology stocks.
Bottom line — OpenAI has about €9.6 billion ($11 billion) secured against its €17.4 billion ($20 billion) target, and the round has not closed.
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The Financial Times reported that the round implies a post-money valuation of €1.09 trillion ($1.25 trillion), below the earlier €1.22 trillion ($1.4 trillion) figure.
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CNBC reported that investors from the United Arab Emirates are leading the round alongside Coatue.
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The Financial Times reported that some investors reduced their allocations before a Friday commitment deadline, with the first close expected to fall short of the target.
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TechCrunch linked the fundraising slowdown partly to Wall Street’s growing caution about heavy AI infrastructure spending.
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Fortune reported that rival Anthropic’s planned IPO is adding competition for investors’ attention.