OpenAI · Financial Times · United Arab Emirates · CNBC Technology
OpenAI pares fundraising goal, now seeking up to $20 billion in latest round
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OpenAI is seeking to raise up to $20 billion in a new funding round, CNBC confirmed on Saturday, paring back its earlier target of up to $30 billion.
Key facts
- The Financial Times first reported that OpenAI had reduced its target for the round by $10 billion, and said the company would seek a post-money valuation of $1.25 trillion
- OpenAI is seeking to raise up to $20 billion in a new funding round, CNBC confirmed on Saturday, paring back its earlier target of up to $30 billion
- AI-linked stocks sank on Friday, with chip maker Intel down 25% on lackluster revenue guidance, Micron down 5.5%, and Nvidia falling 4%
- Investors from the United Arab Emirates are leading the round alongside Coatue, as CNBC previously reported
Summary
The funding round is still in progress and has not closed, so the figures are subject to change, a person directly familiar with the deal told CNBC, asking to remain unnamed as they were not authorized to discuss the details publicly. The Financial Times first reported that OpenAI had reduced its target for the round by $10 billion, and said the company would seek a post-money valuation of $1.25 trillion. Investors from the United Arab Emirates are leading the round alongside Coatue, as CNBC previously reported. News that the ChatGPT developer slashed its funding round follows a week when investors asked whether big tech firms' spending on AI, especially to build out data centers and snap up GPUs, will deliver adequate returns.