AI NewsWaveOpenAI lowers target valuation in funding round to $1.25 trillion
Key points
- Target valuation cut from $1.4 trillion to $1.25 trillion
- Based on FT and CNBC reports; outlets differ on the reason
- Reported to be nearing completion of a raise of up to $30 billion
OpenAI has reportedly lowered its target valuation in a new funding round from $1.4 trillion to $1.25 trillion. Chosun Biz, Newsis and EBN cited a Financial Times (FT) report on the 22nd (local time), while Digital Today said CNBC reported the same day, citing multiple people familiar with the deal.
Outlets expressed the size of the cut differently. Digital Daily wrote that the target was lowered by $150 billion, or about 11%, while AI Times and Chosun Biz said in their headlines that it was cut by about 200 trillion won. The won conversions also differ: AI Times gave 1,855 trillion won to 1,656 trillion won, while Chosun Biz gave 1,850 trillion won to 1,652 trillion won.
Explanations of the background also diverge. AI Times wrote that the cut appears to reflect a lukewarm response from some investors, fatigue over large-scale fundraising and concern about the sustainability of the AI infrastructure investment boom. Digital Daily said it reflected weaker investor sentiment amid concerns about overheated AI investment. Newsis reported that OpenAI ran into investor pushback while postponing an initial public offering (IPO) and raising new investment, and EBN wrote that it faced investor opposition.
Digital Today reported that OpenAI has entered the final stage of raising up to $30 billion at a $1.25 trillion valuation, and that the round is bridge funding ahead of a potential IPO. In its headline, the outlet wrote that the United Arab Emirates (UAE) is leading the investment.
Earlier reports put the target higher. Chosun Biz said that on the 19th (local time) Reuters reported that OpenAI was speeding up a raise of about $30 billion ahead of Anthropic's IPO. IT Chosun wrote that Reuters reported OpenAI was seeking to close funding before mid-November to be valued at more than $1.4 trillion, and Digital Daily also reported that the valuation being cited as the target exceeded $1.4 trillion.