OpenAI is now seeking approximately $20 billion in its latest funding round, down from an initial target of $30 billion. The first closing is expected to bring in less than the new target after some investors scaled back their commitments.
The company has also lowered its valuation target to $1.25 trillion, from a previously floated $1.4 trillion. The changes come amid a broader sell-off in technology and AI stocks and increased scrutiny of the high costs of AI infrastructure.
OpenAI is also racing to secure commitments before the highly anticipated IPO of rival Anthropic, which is competing for capital from the same investors. Despite the reduced target, the round is still set to be one of the largest ever for a private company.