OpenAI trims its funding goal by $10 billion as AI investor demand cools

The ChatGPT maker lowered its pre-money valuation target to $1.25 trillion after a lukewarm response from potential backers OpenAI has cut its funding goal by $10 billion as concerns about the technology sector grow. The company has also lowered the valuation target for its latest round from $1.4 trillion to $1.25 trillion pre-money. That is a $150 billion haircut, which is more than most companies on earth are worth. What changed in the OpenAI round OpenAI is now looking to raise up to $30 billion. The round is designed as interim funding, a bridge to carry the company toward a planned initial public offering slated for early 2027. The reset follows disappointing demand from Morgan Stanley private-wealth clients and other prospective investors. Many of them balked at committing money at the higher valuation. Feedback on the current demand has described it as a “thud.” OpenAI is working to finalize the round by October 30. Potential lead investors being courted for commitments include Coatue Management and funds based in the United Arab Emirates. Some investors reportedly feel fatigued after earlier large commitments to the company. Others want to see how rival Anthropic’s upcoming...