OpenAI has lowered its funding target to $20 billion from a previously reported $30 billion, according to The Financial Times. The company was earlier expected to raise at a $1.4 trillion valuation, then at $1.25 trillion, ahead of a planned IPO.
The Financial Times reported that a group of investors from the United Arab Emirates will lead the round. A subsequent 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 faced a "tepid" response from some large investors. The funding challenges coincide with Wall Street caution over heavy AI infrastructure spending and a tech stock sell-off.