OpenAI pares fundraising goal, now seeking up to $20 billion in latest round
The funding round is still in progress and has not closed, so the figures are subject to change, a person directly familiar with the deal told CNBC.
TL;DR
- OpenAI is seeking to raise up to $20 billion in a new funding round, down from an initial target of $30 billion.
- The figures are subject to change as the funding round is still in progress.
- Investors from the UAE are leading the round alongside Coatue.
- The reduction in fundraising goal follows investor concerns about the returns on significant AI spending by big tech firms.
- AI-linked stocks, including Intel, Micron, and Nvidia, experienced declines recently.
- Microsoft, Google, and Amazon have issued capital expenditure figures or forecasts below analyst expectations.
- Alphabet experienced its worst trading day ever after its search revenue fell short of expectations, partly due to lower monetization in its AI Mode.