OpenAI reportedly cuts funding target to $20bn amid AI share sell-off

OpenAI is reportedly seeking about $20 billion in its latest funding round, down from a target of $30 billion last month, as a sell-off in AI shares makes investors more cautious. The Financial Times reported the change, citing people familiar with the matter.

The proposed fundraising would value the company at $1.25 trillion, compared with a $1.4 trillion valuation attached to last month’s target, according to the report, republished by ANP. OpenAI’s plans have not been confirmed by the company in the report.

The FT attributed the reduced target both to investor unease over the scale of spending on artificial intelligence and to the prospect of a stock-market listing by rival Anthropic. Shares in AI-related companies fell sharply on Friday amid doubts about whether the investments would generate sufficient returns, the report said. Nvidia was overtaken by Apple as the world’s most valuable publicly listed company.