OpenAI Reportedly Cuts Funding Target to $20 Billion
publishers 15articles 16first reported 31 Oct, 01:56 UTCdeveloping since 31 Oct · 2 editions
OpenAI has reduced the target for its latest funding round from $30 billion to $20 billion after receiving a muted response from some major investors, according to reports from the Financial Times and The Wall Street Journal.
The company had previously been reported to be seeking funding at valuations of $1.4 trillion and, later, $1.25 trillion ahead of a planned initial public offering. The Wall Street Journal reported that OpenAI has secured $11 billion so far, less than half of its original target.
The Financial Times said a group of investors from the United Arab Emirates will lead the round. Its initial close is expected to fall short of the revised $20 billion goal, though a subsequent offering aimed at wealthy individual investors could bring the total closer to that amount.
The revised fundraising effort comes during a broad technology-stock sell-off as investors have grown more cautious about spending on artificial-intelligence infrastructure. TechCrunch has reached out to OpenAI for comment.
HOW THIS STORY WAS MADE
Written from 8 articles, 1 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 12 h after the record first saw the story; the editor revised it.
- Publishers
- 15
- Source articles
- 16
- Given to the writer
- 8, 1 with the article's own text
- Independent newsrooms
- 8
- This version written
- 12 h after the record first saw the story
- Second model (editor)
- revised
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and changed it before publication. Struck words were in the draft; underlined words are its corrections.
WHAT IT FLAGGED editor revise: Change the unsupported claim about OpenAI's response to match TechCrunch's statement that it sought comment. - "OpenAI had not commented on the reports when contacted by TechCrunch.": The source says only that TechCrunch reached out to OpenAI for comment, not that the company had failed to comment.
THE DRAFT AND THE CHANGES
OpenAI Reportedly Cuts Funding Target to $20 Billion
OpenAI has reduced the target for its latest funding round from $30 billion to $20 billion after receiving a muted response from some major investors, according to reports from the Financial Times and The Wall Street Journal.
The company had previously been reported to be seeking funding at valuations of $1.4 trillion and, later, $1.25 trillion ahead of a planned initial public offering. The Wall Street Journal reported that OpenAI has secured $11 billion so far, less than half of its original target.
The Financial Times said a group of investors from the United Arab Emirates will lead the round. Its initial close is expected to fall short of the revised $20 billion goal, though a subsequent offering aimed at wealthy individual investors could bring the total closer to that amount.
The revised fundraising effort comes during a broad technology-stock sell-off as investors have grown more cautious about spending on artificial-intelligence infrastructure. TechCrunch has reached out to OpenAI hadfor not commented on the reports when contacted by TechCrunch.comment.
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →