727 FinancePANews October 31 news, according to Jin10, OpenAI has lowered the target size of its latest funding round by $10 billion and is now rushing to finalize the deal. Previously, AI concept stocks in the public market suffered a sell-off, and the imminent listing of its largest competitor Anthropic cast a shadow over this funding round.
ChatGPT developer OpenAI originally planned last month to raise $30 billion at a $1.4 trillion valuation and marketed the deal as investors' last chance to take a stake in OpenAI before its IPO next year. OpenAI at the time cited rapid revenue growth since July to justify a valuation nearly double the previous $852 billion. But as tech stocks suffered a sharp sell-off and market concerns over the scale and pace of AI spending intensified, OpenAI also began to lower its funding expectations. Several people familiar with the matter said OpenAI is now seeking to raise about $20 billion at a $1.25 trillion valuation. OpenAI set last Friday as the deadline for investors to subscribe. The people said the amount raised in the expected first close will be less than $20 billion because some investors have already reduced their subscription amounts.