OpenAI cuts funding target for new round to $20 billion

What happened: OpenAI has cut its target for its latest funding round to $20 billion, down from $30 billion, according to the Financial Times. The FT first reported the lower target on Friday 30 October. TechCrunch's report is dated 31 October.

The numbers: Earlier reports put the raise at $30 billion, first at a $1.4 trillion valuation and then at $1.25 trillion ahead of a planned IPO. The first close is expected to be lower than $20 billion, but no figure has been given. The Wall Street Journal reports that OpenAI has secured $11 billion so far. That figure comes from the WSJ alone, and no independent confirmation has been found.

The catch: The WSJ describes the response from some large investors as "tepid."

Who's affected: The round will be led by a group of investors from the United Arab Emirates, according to the FT. A later retail offering for wealthy individuals could bring the total to $20 billion. No investors are named.

Context: Reports tie the funding difficulties to Wall Street wariness about heavy AI infrastructure spending and a broader tech stock selloff.

The rivals: TechCrunch says Anthropic's planned IPO could also face challenges.

What's next: An IPO is planned, but no date has been given. TechCrunch contacted OpenAI for comment, and its article includes no response.