OpenAI reportedly cuts its round to $20 billion

OpenAI has lowered the target for its new funding round to $20 billion from $30 billion, the Financial Times reported, according to TechCrunch on October 31. The Wall Street Journal reported that $11 billion has been secured so far. A group of investors from the United Arab Emirates is set to lead the round.

The valuation in the reports has also come down. It was first reported at $1.4 trillion and later at $1.25 trillion. A later offering to wealthy individuals could bring the round to its target. OpenAI did not comment.

The two largest labs are now taking different roads to capital. Anthropic filed to list on October 26, and OpenAI is raising privately ahead of a planned listing.

What this means for your bank

Note in vendor files which of your AI features depend on OpenAI models. A smaller raise can change a provider’s pricing and capacity decisions.
Keep a tested fallback model for critical AI workflows so one provider’s financing does not set your service levels.

Sources

OpenAI reportedly lowers funding target for new round (TechCrunch)techcrunch.com ↗

This is for information only and is not investment advice. The figures come from press reports citing unnamed sources.

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