OpenAI · United Arab Emirates · Wall Street · TechCrunch AI
OpenAI reportedly lowers funding target for new round
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OpenAI’s latest funding round isn’t living up to expectations, according to multiple news reports.
Key facts
- OpenAI was previously reported to be raising $30 billion at a $1.4 trillion valuation, and then at a $1.25 trillion valuation, ahead of a planned IPO
- A follow-up story in The Wall Street Journal offered more details, namely that the company has secured $11 billion so far, and that its fundraising efforts had met with a “tepid” response from some
- The round will be led by a group of investors from the United Arab Emirates, the FT said
- The company’s reported funding challenges could be blamed, in part, on bad timing, as Wall Street investors have become wary of heavy AI infrastructure spending, leading to a major sell off of tech
Summary
OpenAI was previously reported to be raising $30 billion at a $1.4 trillion valuation, and then at a $1.25 trillion valuation, ahead of a planned IPO. The round will be led by a group of investors from the United Arab Emirates, the FT said. A follow-up story in The Wall Street Journal offered more details, namely that the company has secured $11 billion so far, and that its fundraising efforts had met with a “tepid” response from some large investors. TechCrunch has reached out to OpenAI for comment.