OpenAI has secured roughly $11 billion in commitments for its latest funding round, less than half of the $30 billion it set out to raise, according to the Wall Street Journal. The shortfall is the clearest sign yet that the funding boom behind generative AI is losing steam.
The company is now targeting about $20 billion at a valuation of $1.25 trillion, down from an earlier goal of $30 billion at $1.4 trillion, the Financial Times reports. Sources cited by both papers say some investors trimmed their commitments during a broader tech sell-off, and OpenAI expects to raise more in the coming weeks.
OpenAI funding round details
The gap is being blamed on fading appetite from large investors after weak quarterly results from Google, Amazon and Intel shook confidence in the sector. The same mood hit Intel's share price and Meta's outlook in recent weeks.
To close the hole, OpenAI reportedly plans to court family offices and high-net-worth individuals, a smaller and less predictable pool of capital than the sovereign funds and growth investors that powered earlier AI rounds.
- Round raised so far: about $11 billion
- Original target: $30 billion
- Revised target: up to $20 billion
- Current valuation: $1.25 trillion (previously $1.4 trillion)
