OpenAI Cuts Fundraising Target to $20B Amid AI Market Cooling
Amid tech stock corrections and concerns over AI capital expenditure, OpenAI has lowered its latest fundraising target from $30 billion to approximately $20 billion, reducing its valuation from $1.4 trillion to $1.25 trillion. Despite the reduced raise, the company's massive compute demands persist, while facing competitive pressure from Anthropic's upcoming IPO.
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IT Home reported on October 31 that the Financial Times (FT) published an article today stating that OpenAI, the developer of ChatGPT, has lowered its fundraising target for its latest round by approximately $10 billion from the original $30 billion (equivalent to about RMB 200.087 billion at current exchange rates). The company is now seeking to raise approximately $20 billion (equivalent to about RMB 133.391 billion) at a valuation of around $1.25 trillion (equivalent to about RMB 8.34 trillion).
The report noted that the company had previously planned to raise $30 billion (equivalent to about RMB 200.087 billion) at a valuation of $1.4 trillion (equivalent to about RMB 9.34 trillion), positioning this capital raise as the "last chance" for investors to enter before next year's IPO.
However, amid a significant pullback in tech stocks and growing market concerns over massive AI capital expenditures, the Nasdaq-100 index, which is heavily weighted toward technology companies, fell 3.5% this Friday. Investors have begun to reassess the return cycle and sustainability of investments in AI infrastructure.
Sources familiar with the matter stated that OpenAI set a deadline for investors to commit funds by Friday. However, due to some investors reducing their subscription amounts, the initial closing amount may be lower than $20 billion (equivalent to about RMB 133.391 billion).
An investment consortium led by MGX, a UAE state-backed technology fund, is expected to be the largest contributor. As part of the deal, OpenAI also has the option to lease newly built computing capacity in the UAE. Other institutions planning to participate include Sequoia Capital, Founders Fund, Coatue, Andreessen Horowitz, and SoftBank.
OpenAI's fundraising pace is also influenced by its competitor Anthropic. The latter is expected to go public next month with a potential valuation reaching $1.5 trillion (equivalent to about RMB 10 trillion) or higher, attracting significant investor capital and market attention.
Despite the reduced fundraising target, OpenAI's capital needs remain substantial. The company raised $122 billion (equivalent to about RMB 813.687 billion) in March of this year but plans to invest several times that amount into the computing power required for model training and operation.