OpenAI’s latest funding round didn’t quite live up to expectations, according to multiple news reports.
OpenAI previously reportedly raised $30 billion at a valuation of $1.4 trillion, then $1.25 trillion, ahead of a planned IPO. But the Financial Times reported Friday that the company subsequently lowered its funding target to $20 billion, with a first close expected to be even lower than that figure.
The round will be led by a group of investors from the United Arab Emirates, the FT said. A subsequent retail offering aimed at high-net-worth individuals could bring the total funding amount to the $20 billion target.
A subsequent article in the Wall Street Journal provided more details, namely that the company has raised $11 billion so far and that its fundraising efforts have been met with a “lukewarm” response from some large investors.
TechCrunch has contacted OpenAI for comment. The company’s reported funding woes could be blamed, in part, on bad timing, as Wall Street investors were wary of heavy spending on AI infrastructure, leading to a selloff in tech stocks. And Anthropic’s planned IPO could also face challenges.
Gn bussni
