OpenAI Cuts Fundraising Target by $10 Billion

OpenAI has cut its fundraising target by $10 billion. The maker of ChatGPT is now aiming to raise about $20 billion at a $1.25 trillion valuation. That is down from its previous goal, announced last month, of $30 billion at a $1.4 trillion valuation. According to the Financial Times, the change came after AI company stocks fell sharply. It also came after news that Anthropic, the maker of the Claude models, is planning to go public through an IPO (initial public offering, meaning the first sale of shares to the general public).

It looks like OpenAI is facing its first real financial headwinds. The trouble is not with its AI models, though. As Anthropic prepares to go public, investors are growing more cautious. If AI stocks keep falling, large funding rounds across the industry, those at $1 trillion and above, may get harder to pull off in the near future.