OpenAI scales its capital raise back to 20 billion dollars as big investors hesitate
According to the Financial Times and The Wall Street Journal, the ChatGPT maker has so far secured around 11 billion dollars, less than half of what it originally sought.
OpenAI is now aiming for at most 20 billion dollars in its new funding round, 10 billion less than previously planned. The Financial Times reported this on Friday, and CNBC confirmed the figure on Saturday through a person familiar with the matter, The Next Web writes. According to The Wall Street Journal, the company has raised around 11 billion dollars so far and some large investors responded coolly. OpenAI had set Friday as the deadline for commitments. Some investors lowered their amounts, so the first close will probably stay below 20 billion, according to the FT.
The round values OpenAI at 1.25 trillion dollars after the new money. The company originally approached investors seeking 30 billion dollars at a valuation of 1.4 trillion, but that valuation was already lowered last week. Investors from the United Arab Emirates, led by the state-backed fund MGX, will be the largest backers according to the FT. SoftBank, Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz also plan to take part. Later on, OpenAI wants to raise further money from family offices and wealthy individuals at the same valuation.
TechCrunch points to unfortunate timing: Wall Street investors have grown more cautious in recent weeks about the huge spending on AI infrastructure, which triggered a sell-off in tech stocks. Alphabet lost 12 percent on the stock market on Thursday after its quarterly results. According to The Wall Street Journal, OpenAI wants to list as early as the start of next year. The company did not respond to CNBC's questions on Saturday, and The Next Web stresses that the figures may still change because the round remains open.