OpenAI has cut the target for its latest funding round by $10 billion to about $20 billion. The ChatGPT maker now seeks a valuation of $1.25 trillion. A UAE investor group is expected to lead the round.
Round terms
The company set a Friday deadline for investors to commit. Some investors have already reduced their allocations, so the first close is expected to come in below the target. Wealthy individuals may join a later retail offering at the current valuation.
Investor lineup
State-backed technology fund MGX is part of the UAE consortium. Venture firms Founders Fund, Coatue, Sequoia Capital, and Andreessen Horowitz are also expected to participate. As part of the deal, OpenAI would gain an option to lease newly developed computing capacity in the region.
Listing plans
OpenAI is pursuing a stock market listing in 2027. It has been keen to close this funding round partly to move ahead of rival Anthropic's imminent listing. The two companies are tapping a similar investor base, Reuters has reported.
US tech stocks have fallen recently on concerns over heavy AI spending. The Nasdaq dropped 2.9% on Friday and is down 7.8% from its all-time closing high reached on October 6. OpenAI and several investors did not immediately respond to requests for comment.
Read more: ft.com