OpenAI has reportedly lowered its funding target for a new round, according to The Financial Times. The FT reported Friday that the company now aims to raise $20 billion, down from earlier reports of $30 billion at a $1.4 trillion valuation and then $1.25 trillion. The first close is expected to be lower than $20 billion.
The round will be led by a group of investors from the United Arab Emirates, the FT said. A later retail offering for wealthy individuals could bring the total to the $20 billion target.
The Wall Street Journal reported that OpenAI has secured $11 billion so far and that its fundraising efforts have met with a "tepid" response from some large investors.
TechCrunch reached out to OpenAI for comment. The source report does not include a response from the company.
The source report suggests the funding challenges could partly reflect poor timing, as Wall Street investors have grown wary of heavy AI infrastructure spending, which has contributed to a sell-off of tech stocks. The report also says Anthropic's planned IPO could be facing challenges. These points are presented in the source as possible explanations, not confirmed causes.