Key takeaways
- The FT reports OpenAI now seeks about $20B at a $1.25T valuation, down from $30B at $1.4T.
- The WSJ reports about $11B in commitments so far, less than half the original target.
- OpenAI has not confirmed the figures, and we read only summaries of both reports.
OpenAI is now seeking about $20 billion at a $1.25 trillion valuation in its latest funding round, down from a $30 billion target at $1.4 trillion, according to the Financial Times. The OpenAI funding round was cut because some investors reduced their commitments during an AI stock sell-off, the FT's sources say, as summarized by Techmeme.
The Wall Street Journal reports that OpenAI has secured about $11 billion in commitments so far, less than half its original $30 billion goal, and expects to raise more in the coming weeks, per Techmeme's summary of the WSJ story. We could read only these summaries, not the full FT or WSJ articles, and OpenAI has not confirmed any of the numbers.
What the reports say
| Detail | Earlier target | Now, per the FT |
|---|---|---|
| Amount | $30 billion | About $20 billion |
| Valuation | $1.4 trillion | $1.25 trillion |
The WSJ's figure is a different measure: $11 billion in commitments secured to date, with more expected.
Why it matters
A lower valuation target in the middle of a market drop says that investors are pricing AI spending more carefully. The Information also reported on October 30 that OpenAI lowered its fundraising target after decreasing its possible valuation, though that story is behind a paywall and we did not read it. Stocks of large technology companies fell sharply on October 30, according to The Information's market briefing.
What we don't know
The reports do not name which investors cut their commitments or by how much. They give no closing date for the round. Watch for an OpenAI statement or a final number in the coming weeks.