OpenAI cuts its funding target to 20 billion dollars

OpenAI has cut the target for its latest funding round by 10 billion dollars and is now seeking about 20 billion dollars, the Financial Times reported, citing people familiar with the matter. Reuters and Bloomberg also carried the report.

The ChatGPT maker is said to be pitching a valuation of 1.25 trillion dollars. Its earlier plan sought 30 billion dollars at a 1.4 trillion dollar valuation, so both the round size and the company’s proposed value have moved lower.

The reset follows a broad selloff in technology stocks and growing investor concern about how quickly record spending on AI chips, data centers and energy will produce returns. OpenAI still needs enormous amounts of capital to train frontier models and operate products used by hundreds of millions of people, making the terms of this round an important signal for the wider market.

Even at the reduced target, the financing would remain one of the largest private technology rounds ever attempted. The change does not mean investor demand has disappeared, but it suggests the market is becoming more selective about AI valuations and capital requirements. OpenAI has not publicly confirmed the revised terms.