OpenAI cuts its funding target to up to $20B at a $1.25T valuation, FT reports

OpenAI is now seeking up to $20 billion at a $1.25 trillion valuation, about a third less than the earlier $30 billion target, the Financial Times reported. The WSJ put commitments at roughly $11 billion. The round is still open and the figures could change. Reports differ on whether the valuation is pre-money or post-money, and the first close is expected to come in below $20 billion.

CNBC reported on 22 October that UAE investors and Coatue are leading. MGX is expected to be the largest participant, with Founders Fund, Sequoia Capital and Andreessen Horowitz expected to join. Wealthy individuals could invest later at the same valuation. Bloomberg first reported the raise on 29 September at $1.4 trillion.

OpenAI was valued at $852 billion in its $122 billion round, which closed on 31 March. Bloomberg puts annualised revenue at about $50 billion at the end of September. OpenAI had not commented.