OpenAI lowers fundraising target to $20 billion

OpenAI has pared back its current fundraising goal by $10 billion, now targeting up to $20 billion. The company is reportedly seeking a post-money valuation of $1.25 trillion for the round, which remains open and subject to potential further changes.

The reduction follows a reported deadline for investor commitments set for last Friday. While investors from the United Arab Emirates and Coatue are participating in the round, some backers have chosen to reduce their allocations. OpenAI has not issued a formal statement regarding the shift.

This development highlights a broader cooling in market sentiment toward artificial intelligence. Concerns have mounted over whether the heavy capital expenditure by major firms like Microsoft, Alphabet, and Amazon—driven by the need for data centers and GPUs—will yield adequate financial returns in the near term. Recent earnings reports from major tech players have prompted a market reassessment of the sector’s current growth trajectory.