OpenAI Reduces Funding Target to $20 Billion Amid Tech Sector Selloff
OpenAI has reportedly lowered its latest funding round target by $10 billion, now seeking approximately $20 billion. This adjustment comes as a broader selloff impacts tech stocks due to concerns regarding massive AI infrastructure spending. The company's desired valuation has also been revised downward to $1.25 trillion from an initial $1.4 trillion. A consortium of UAE investors, including the state-backed fund MGX, is expected to lead the round, potentially providing OpenAI with access to new computing capacity in the region. Major venture capital firms such as Sequoia Capital and Andreessen Horowitz are also anticipated participants. The funding drive is seen as a strategic move to secure capital ahead of competitor Anthropic's imminent listing.
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Topics: AI investment OpenAI funding round Tech stock selloff Valuation markdown
Part of the story OpenAI Reaches $1.25 Trillion Valuation Amid Anthropic IPO Filing (7 articles)