OpenAI’s new funding round is reportedly falling short of expectations, according to TechCrunch, which cites multiple news reports.

The round was first reported as $30 billion at a $1.4 trillion valuation, then as $30 billion at $1.25 trillion ahead of a planned IPO. The Financial Times reported on Friday that OpenAI has cut its target to $20 billion, with a first close expected below that figure.

The FT says investors from the United Arab Emirates will lead the round, and a later retail offering for wealthy individuals could bring the total to $20 billion. The Wall Street Journal reported that OpenAI has secured $11 billion so far, less than half of the original $30 billion, and that fundraising drew a “tepid” response from some large investors.

OpenAI had not commented when TechCrunch published, and none of the figures is confirmed by the company. TechCrunch’s own assessment is that bad timing may be part of the story: Wall Street is wary of heavy AI infrastructure spending after a tech stock sell-off.

Sources

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