According to multiple news reports, OpenAI’s latest funding round has fallen short of expectations.
Earlier reports indicated that OpenAI planned to raise $30 billion at a valuation of $1.4 trillion—a figure later adjusted to $1.25 trillion—as it prepared for an initial public offering (IPO). However, the Financial Times reported on Friday that the company has lowered its fundraising target to $20 billion, with the initial tranche expected to be even smaller.
The Financial Times noted that this round is set to be led by a group of investors from the United Arab Emirates. A subsequent retail offering, aimed at wealthy individual investors, is expected to help reach the $20 billion goal.
A follow-up report from The Wall Street Journal provided further details, stating that while the company has raised $11 billion to date, its fundraising efforts have met with a lukewarm response from some major investors.
TechCrunch has reached out to OpenAI for comment. The company’s fundraising challenges may be partly due to poor timing; Wall Street investors have grown cautious regarding massive capital expenditures on AI infrastructure, a sentiment that has contributed to a sell-off in tech stocks. Meanwhile, Anthropic is also reportedly facing potential hurdles in its own IPO plans.