OpenAI Said to Cut Funding Target to $20 Billion as Investor Demand Cools

OpenAI has lowered the target for its latest funding round to $20 billion, down from earlier reports of $30 billion, according to The Financial Times. The first close is expected to come in below that figure, with a group of investors from the United Arab Emirates leading the round. The Wall Street Journal reported the company has secured $11 billion so far and encountered a "tepid" response from some large investors. A subsequent offering to wealthy individual investors could lift the total to the $20 billion target. The shortfall comes as Wall Street grows wary of heavy AI infrastructure spending, triggering a broad selloff in tech stocks. Earlier reports had valued OpenAI at $1.4 trillion and then $1.25 trillion ahead of a planned IPO. A planned IPO by rival Anthropic may also face challenges.