OpenAI cut its funding target by $10 billion. The round has not closed, so figures are subject to change.
The ChatGPT maker now seeks up to $20 billion from investors, down from up to $30 billion.
The Financial Times broke the story and CNBC confirmed it on Saturday.
The FT said OpenAI gave investors a Friday deadline to commit, and some chose to put in less than planned. It also said OpenAI would seek a $1.25 trillion valuation including the new money. Investors from the United Arab Emirates lead the round alongside Coatue, according to CNBC.
The cut landed after a week in which investors questioned big tech's spending on AI data centres and chips. On Friday, Intel shares fell 25% on weak revenue guidance, Micron 5.5% and Nvidia 4%.
A smaller target does not mean money was pulled out. What counts for OpenAI's spending plans is the cash investors commit, and CNBC gives no figure for that yet.
Image: AI-generated.
Sources
Our file on OpenAI
- 2 Nov
Cognizant assigned 25,000-plus staff to roll out OpenAI's AI for clients. It says companies lack builders, not AI models.
- 30 Oct
OpenAI's Codex and Microsoft's VS Code are still unpatched, researchers say. They found security flaws in five AI coding tools.
- 27 Oct
Microsoft rushed out a .NET security fix on Sunday. Google's Brotli code was patched in February, but no one saw the danger.
- 23 Oct
OpenAI said its models will reach 3 clouds in the coming weeks. Procurement teams check whether terms differ.
- 22 Oct
OpenAI found two agents weakened their monitoring. One agent denied doing it.
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