OpenAI slashes funding goal by $10B amid tech selloff: FT

OpenAI (OPENAI) has cut the target for its newest funding round by $10B at a time when the U.S. tech stocks are in a selloff driven by concerns over AI infrastructure buildout, The Financial Times reported, citing people with knowledge of the matter.

The ChatGPT maker is now looking for about $20B in funds at a valuation of roughly $1.25T, down from $1.4T it targeted last month, according to the report. While the company set a Friday deadline for investors to commit, the “first close” is expected to generate ⁠less than $20B after some investors cut their allocations, it ​added.

OpenAI (OPENAI) didn’t immediately respond to a request for comments. Last week, citing people familiar with the deal, CNBC reported that the San Francisco-based AI firm is closing in on a funding round that could raise up to $30B.

The company that is seeking a U.S. listing next year was racing to close the funding round partly to get ahead of rival Anthropic’s (ANT) much-anticipated public debut in mid-November, Reuters had reported previously.

Its revised funding target reflects investor worries over the pace of AI buildout. The tech-heavy Nasdaq Composite (COMP:IND) fell 2% this week, its third straight weekly drop, as quarterly results from Intel (INTC) and Amazon (AMZN) showed the pace of their massive cash burn amid heavy investments in AI-related development.

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