OpenAI cut funding target to $20 billion as AI sell-off deepened
What's new: The round's valuation fell to $1.25 trillion, and MGX-backed UAE investors are expected to be the biggest participants.
OpenAI lowered the target for its latest fundraising round to about $20 billion, down by $10 billion, as a broader tech sell-off tied to concerns about AI spending hit investor appetite. The ChatGPT maker's target valuation also dropped to $1.25 trillion from $1.4 trillion, according to the Financial Times report cited by Reuters. Investors faced an Oct. 30 deadline to commit, but the first close is expected to come in below $20 billion after some cut their planned allocations. A UAE investor group that includes state-backed tech fund MGX is expected to be the largest backer. As part of the deal, OpenAI would also get the option to lease newly built computing capacity in the region. The company is pursuing a stock market listing in 2027.