OpenAI Aims for $20 Billion, Raises $11 Billion and Leverages UAE

OpenAI has already raised $11 billion, but some major investors have received the operation with caution. The overall target has been lowered to $20 billion, with an initial closing expected below this threshold and led by investors from the United Arab Emirates. An offering aimed at high-net-worth individuals could complement the round, far from the initial ambitions related to an IPO.

$11 Billion Secured and Tepid Reception from Some Major Investors

OpenAI has so far secured $11 billion, according to the Wall Street Journal. The media outlet also reports that some major investors have shown what is described as a "tepid" reaction to the fundraising. The difficulties encountered are attributed to Wall Street's increased caution regarding heavy investments in AI infrastructure and a recent wave of tech stock sell-offs. Additionally, the planned IPO of Anthropic may also face obstacles.

Target Lowered to $20 Billion and Round Led by UAE Investors

The Financial Times reports that OpenAI has lowered its funding target to $20 billion. An initial closing is expected to be below this amount. The funding round is led by a group of investors from the United Arab Emirates. A subsequent offering aimed at high-net-worth individuals could help reach the $20 billion target.

Initial Ambitions Revised Compared to IPO Trajectory

At the start of the process, OpenAI aimed to raise $30 billion, with an initial valuation set at $1.4 trillion, later revised to $1.25 trillion, in anticipation of an IPO. Several media outlets have reported that the company has not met these funding goals. A comment has been requested from OpenAI.