OpenAI has cut the target for its latest funding round by $10 billion as a selloff in technology shares, driven by worries over heavy spending on artificial intelligence, weighs on investor appetite, according to people with knowledge of the matter.
The ChatGPT maker is now seeking about $20 billion. People familiar with the talks put its desired valuation at $1.25 trillion. The company set a Friday deadline for investors to commit, though the first close is expected to bring in less than $20 billion after some backers reduced how much they would put in.
Who is expected to back the raise
A consortium of UAE investors that includes the state-backed technology fund MGX is expected to be the largest participant. As part of that arrangement, OpenAI would gain the option to lease newly developed computing capacity in the region.
Venture capital firms including Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to take part. Wealthy individuals would later have the option to invest in a subsequent retail offering at the same $1.25 trillion valuation, the people said. OpenAI, MGX, Coatue, Sequoia Capital and Andreessen Horowitz did not immediately comment when asked outside regular business hours; Founders Fund could not be reached.
Market pressure and listing plans
US tech stocks have been under pressure amid growing concern about the scale of AI spending. The tech-heavy Nasdaq index dropped 2.9% on Friday and stood 7.8% below its all-time closing high reached on 6 October.
OpenAI, which is pursuing a public listing in 2027, has been keen to close this raise partly to move ahead of Anthropic’s imminent listing, as both companies are tapping a similar pool of investors. For Pakistani readers watching global AI names, that means OpenAI still has no shares on any stock exchange today; any retail path described so far is a later private offering for wealthy individuals, not a market listing.
Timeline: what has happened so far
- 6 October: The Nasdaq reaches an all-time closing high, later used as the reference for the recent slide.
- Recent weeks: US tech shares fall as investors grow uneasy about large AI infrastructure outlays.
- Friday: OpenAI sets a commitment deadline for the round; people familiar with the matter say the raise target is cut by $10 billion to about $20 billion, with a $1.25 trillion valuation goal; the Nasdaq drops 2.9% and is 7.8% below the 6 October high.
- Next steps: A first close is expected below the full $20 billion target after some investors cut allocations; UAE-linked capital led by MGX is seen as the largest slice, with major US venture firms also expected to join.
Aasan alfaaz mein
OpenAI ne apni nayi funding ka target 10 billion dollar kam kar diya hai. Ab company lagbhag 20 billion dollar lene ki koshish kar rahi hai, aur valuation ka hadaf 1.25 trillion dollar bataya ja raha hai. Duniya bhar ke tech shares AI ke kharchon ki fikr se giray hain. Pakistan mein OpenAI abhi stock market par nahi milta; public listing 2027 ki taraf sochi ja rahi hai.
