CoinDesk
OpenAI is seeking about $20 billion at a $1.25 trillion valuation, down from a previous target of $30 billion at $1.4 trillion, the Financial Times reported. The company is also facing a sharp downturn in AI-related stocks.
Why it matters
The Nasdaq 100 has slumped about 10% in three weeks since reaching a record high on October 6, including a 4.5% drop on Friday. OpenAI’s lower fundraising target and valuation reflect a tougher backdrop for companies seeking capital amid investor anxiety over the AI boom.
Market impact
OpenAI’s capital plans also face competition from Anthropic, which reportedly plans to go public in November and is aiming to raise as much as $100 billion at a $1.5 trillion valuation. OpenAI had previously put off IPO plans until 2027.
Frequently asked questions
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How much has OpenAI reportedly cut its fundraising target?
OpenAI is now seeking about $20 billion, down from a previous target of $30 billion.
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How did OpenAI's reported valuation target change?
The reported target fell from $1.4 trillion to $1.25 trillion.
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What has happened to the Nasdaq 100 during the AI selloff?
The index has fallen about 10% in three weeks since its October 6 record, including a 4.5% drop on Friday.
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How is Anthropic competing with OpenAI for investor capital?
Anthropic reportedly plans to go public in November and is aiming to raise as much as $100 billion at a $1.5 trillion valuation.
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When had OpenAI previously planned to pursue an IPO?
OpenAI had previously put off IPO plans until 2027.
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