Lifestyle
OpenAI reportedly lowers its new funding round target to $20 billion
TechCrunch, citing the Financial Times and the Wall Street Journal, reports that OpenAI has cut its new funding round target from $30 billion to $20 billion and has raised $11 billion so far. TechCrunch says Wall Street's growing caution over heavy AI infrastructure spending is partly to blame.
About 3 min read
What happened
TechCrunch reports that, according to several media outlets, OpenAI's latest funding round has not fully met expectations.
TechCrunch says OpenAI was previously reported to be raising $30 billion at a $1.4 trillion valuation (the total value investors assign to the company), and later reportedly at $1.25 trillion. Both came ahead of a planned IPO (initial public offering, when a company first sells its shares on a stock market). TechCrunch says the Financial Times reported on Friday that OpenAI has lowered its target to $20 billion, with the first close expected to be even smaller.
Funding details in the reports
Relaying the Financial Times, TechCrunch says the round will be led by a group of investors from the United Arab Emirates, meaning they will anchor the funding. If the round is later opened to wealthy individuals (what the report calls a retail offering), the total could reach the $20 billion target.
TechCrunch says a follow-up Wall Street Journal report adds more detail: OpenAI has raised $11 billion so far, and its fundraising efforts have met with a "tepid" response from some large investors.
| Item | Earlier reports | Latest reports (as relayed by TechCrunch) |
|---|---|---|
| Round size | $30 billion | Target lowered to $20 billion |
| Valuation | $1.4 trillion first, then $1.25 trillion | Latest valuation not mentioned in the reports |
| Lead investor | Not mentioned in the reports | Financial Times: a group of UAE investors |
| Progress | Not mentioned in the reports | Wall Street Journal: $11 billion raised so far |
Why it matters
TechCrunch argues these fundraising difficulties are partly a matter of bad timing: Wall Street investors have grown wary of massive AI infrastructure spending, leading to a major sell-off of tech stocks. TechCrunch also notes that Anthropic's planned IPO could face challenges as well.
For general readers, this story reflects a shifting fundraising climate for AI companies. The report does not explain how this might affect OpenAI's products or services, so it is best not to over-interpret it. The safer approach is to wait for OpenAI's official response and further reporting.
Frequently asked questions
What is OpenAI's new funding target?
Citing the Financial Times, TechCrunch reports the target has been lowered to $20 billion, with the first close expected to be smaller. Earlier reports had said $30 billion.
How much has been raised so far?
TechCrunch says the Wall Street Journal reports OpenAI has raised $11 billion so far.
Who is leading the round?
TechCrunch, relaying the Financial Times, says a group of UAE investors will lead, with a later retail offering open to wealthy individuals.
Has OpenAI officially confirmed this?
No. The content comes from TechCrunch's relay of Financial Times and Wall Street Journal reports. TechCrunch has asked OpenAI for comment, and no official response appears in the report.
Browse the latest news in this topic
Lifestyle
Judge Rejects xAI Motion, Letting NAACP Lawsuit Over Colossus Data Center Air Pollution Proceed
According to TechCrunch, a federal judge denied xAI's motion to dismiss. The NAACP alleges xAI ran gas turbines at its Colossus data center outside Memphis without air permits. The case will continue amid growing data center backlash.
Lifestyle
Privacy-Focused AI Assistant Ollie Is Shutting Down, With the App Closing November 6
According to TechCrunch, Ollie, an AI assistant startup focused on privacy and helping families stay organized, will shut down on November 6. Its CEO said growing competition made it hard to stand out and raise money. Users will get data export and refund instructions in the coming days.
Lifestyle
Apple Intelligence Is Coming to China With iOS 27.3: Which AI Features iPhone Users Get, and What's Missing
The Verge reports that Apple will bring some Apple Intelligence features to China via iOS 27.3, with a beta expected November 4 and the full release scheduled for December. Chinese iPhone users get these AI tools for the first time, but the new Siri AI is not included.
Lifestyle
AWS AgentCore Session endpoints let you preview a web app live in your browser while a coding agent edits it
AWS says Session endpoints in the Amazon Bedrock AgentCore runtime let teams reviewing an AI agent's work open the web app it is changing in their own browser, through an authenticated URL, and see edits within seconds instead of waiting for a deployment each time.