OpenAI has reportedly revised its fundraising objective, now aiming to secure up to $20 billion, a decrease from its previously targeted $30 billion, according to reports from CNBC and the Financial Times. The ongoing funding round, which has not yet closed, is subject to potential changes in its final terms. A source familiar with the deal, who spoke on condition of anonymity, confirmed the revised figure to CNBC.
The Financial Times initially reported that OpenAI had lowered its funding target by $10 billion and is seeking a post-money valuation of $1.25 trillion. The AI research and development company had reportedly set a deadline of Friday for investors to commit to this latest round, with some indicating a desire to reduce their investment allocations.
Investors from the United Arab Emirates are reportedly leading the current round, alongside Coatue, as previously indicated by CNBC. This development follows a week where significant questions have been raised about the return on investment for major tech firms' substantial spending in the artificial intelligence sector, particularly concerning data centers and GPU acquisition.
The AI sector experienced a notable downturn on Friday, with key players seeing declines. Intel's stock fell by 25% following weaker-than-expected revenue guidance. Micron saw a 5.5% drop, and Nvidia declined by 4%.
Major tech giants such as Microsoft, Alphabet (Google), and Amazon have been making significant investments in AI infrastructure to meet escalating demand. However, last week, all three companies released capital expenditure figures or forecasts that fell short of analyst expectations. Alphabet, in particular, experienced its worst trading day ever on Thursday after its search revenue failed to meet expectations. Philipp Schindler, Alphabet's chief business officer, attributed the impact on search partly to lower monetization within the company's AI Mode.
