Multiple news outlets report that OpenAI’s latest private fundraising push is smaller than earlier public estimates. Earlier reports suggested the company was seeking $30 billion in funding at a valuation of $1.4 trillion, and later at $1.25 trillion ahead of a potential IPO. The Financial Times, however, reported on Friday that OpenAI has lowered its target to $20 billion.
According to the Financial Times, the round will be led by a consortium of investors from the United Arab Emirates. The paper added that a subsequent retail offering aimed at wealthy individuals could increase the total amount raised and help reach the $20 billion goal.
A follow-up report in The Wall Street Journal provided more detail, saying OpenAI has secured about $11 billion so far. The WSJ also described interest from some large investors as “tepid,” which has contributed to a slower fundraising pace.
Observers and the reports point to broader market conditions as a factor. Wall Street investors have become increasingly wary of heavy spending on AI infrastructure, a shift that has contributed to significant sell-offs in technology stocks. The planned IPO of other AI companies, such as Anthropic, is reportedly also facing challenges, which may be affecting investor sentiment across the sector.
TechCrunch has reached out to OpenAI for comment. Overall, the reporting suggests OpenAI’s private funding round is progressing more slowly than earlier projected, influenced by investor caution and market dynamics around AI investments.
