OpenAI’s latest funding round has not met expectations, according to multiple news reports.
OpenAI was previously reported to raise $30 billion at a $1.4 trillion valuation ahead of its planned IPO, followed by $30 billion at a $1.25 trillion valuation. However, the Financial Times reported on Friday that the company has since lowered its fundraising target to $20 billion, and that the initial closing is expected to be even lower.
The round will be led by a group of investors from the United Arab Emirates, FT said. After that, the company’s total funding could reach its $20 billion goal once retail products are offered to wealthy people.
A subsequent article in the Wall Street Journal went into more detail, revealing that the company had secured $11 billion to date, and that its fundraising efforts had received a “tepid” response from some of its biggest investors.
TechCrunch has reached out to OpenAI for comment. The company’s reported financing difficulties may be partly due to bad timing, as Wall Street investors are wary of heavy spending on AI infrastructure, leading to a heavy sell-off in tech stocks.
