OpenAI cut the target for its current funding round to $20 billion from $30 billion and has lined up only about $11 billion so far after a lukewarm response from some large investors, according to the Financial Times and the Wall Street Journal. Investors from the United Arab Emirates will lead the round at a valuation OpenAI had already lowered to $1.25 trillion from $1.4 trillion, and a later offering to wealthy individuals could help close the gap to $20 billion. The cut followed a week of heavy tech selling, as Alphabet, Meta, and Amazon all reported bigger AI spending plans. OpenAI is also competing for investors with Anthropic, whose S-1 showed positive cash flow over the first half ahead of a November IPO.
