Key Takeaways
- • OpenAI has cut its fundraising target by $10 billion, now seeking about $20 billion at a $1.25 trillion valuation, down from $30 billion at a $1.4 trillion valuation last month, according to the Financial Times.
- • Some investors have already reduced their commitments as an AI stock selloff and growing investor unease over AI spending weigh on the round; the Nasdaq 100 fell 3.5% on Friday.
- • Anthropic, preparing a public listing next month at a valuation of at least $1.5 trillion, adds competition for investor capital.
- • A UAE investor group including state-backed MGX is expected to be the largest participant, with SoftBank, Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also expected to take part.
Summary
OpenAI has reduced its fundraising target by $10 billion as an selloff in AI stocks and the forthcoming public listing of rival Anthropic PBC complicate its efforts to secure investor commitments, the Financial Times reported. The ChatGPT maker is now seeking about $20 billion at a $1.25 trillion valuation, down from $30 billion at a $1.4 trillion valuation last month, the FT said, citing people with knowledge of the matter. Some investors have reduced their commitments to the round, the report said, reflecting growing unease over the enormous sums being poured into artificial intelligence. The Nasdaq 100 fell 3.5% on Friday.
Bloomberg News reported last week that OpenAI was seeking to raise capital at a $1.25 trillion valuation during the final stages of negotiations. According to the FT, a group of investors from the United Arab Emirates, including state-backed MGX, is expected to be the largest participant in the round. SoftBank Group Corp. and venture capital firms including Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also plan to participate.
OpenAI, Sequoia, Founders Fund and SoftBank declined to comment, the report said. MGX, Coatue and Andreessen Horowitz did not immediately respond to requests for comment.
The fundraising effort faces additional competition from Anthropic, which is preparing to go public next month at a valuation of at least $1.5 trillion, the newspaper said. OpenAI, which raised $122 billion in March, is seeking fresh capital to finance its vast computing ambitions as it prepares for a potential IPO of its own next year.
Bloomberg News reported last week that OpenAI was seeking to raise capital at a $1.25 trillion valuation during the final stages of negotiations. According to the FT, a group of investors from the United Arab Emirates, including state-backed MGX, is expected to be the largest participant in the round. SoftBank Group Corp. and venture capital firms including Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also plan to participate.
OpenAI, Sequoia, Founders Fund and SoftBank declined to comment, the report said. MGX, Coatue and Andreessen Horowitz did not immediately respond to requests for comment.
The fundraising effort faces additional competition from Anthropic, which is preparing to go public next month at a valuation of at least $1.5 trillion, the newspaper said. OpenAI, which raised $122 billion in March, is seeking fresh capital to finance its vast computing ambitions as it prepares for a potential IPO of its own next year.
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