OpenAI’s most recent funding initiative is not quite meeting anticipated levels, according to various news outlets.
OpenAI was previously understood to be seeking $30 billion at a $1.4 trillion valuation, and subsequently at a $1.25 trillion valuation, in anticipation of an IPO. However, The Financial Times reported on Friday that the company has since reduced its funding objective to $20 billion, with an initial funding close expected to be even lower.
The FT indicated that the round will be spearheaded by a consortium of investors from the United Arab Emirates. A subsequent retail offering aimed at affluent individuals could elevate the total funding amount to the $20 billion target.
A follow-up article in The Wall Street Journal provided further details, noting that the company has secured $11 billion thus far, and that its fundraising endeavors encountered a “lukewarm” reception from some significant investors.
TechCrunch has contacted OpenAI for a statement. The company’s reported fundraising difficulties could be attributed, in part, to poor timing, as Wall Street investors have grown wary of substantial AI infrastructure expenditures, leading to a significant sell-off of technology stocks. Additionally, Anthropic’s planned IPO might also be facing hurdles.