(Oct 31): OpenAI has cut its fundraising target by US$10 billion (RM40.6 billion) as an AI stock sell-off and rival Anthropic PBC’s impending public listing complicate its efforts to secure investor commitments, the Financial Times (FT) reported.

The ChatGPT maker is now seeking about US$20 billion at a US$1.25 trillion valuation, down from US$30 billion at a US$1.4 trillion valuation last month, the FT said, citing people with knowledge of the matter. 

Some investors have reduced their commitments to OpenAI’s funding round, according to the report. The scaled-back ambitions reflect growing investor unease over the enormous sums being poured into artificial intelligence (AI). The Nasdaq 100 fell 3.5% on Friday.

Bloomberg News reported last week that OpenAI was seeking to raise capital at a US$1.25 trillion valuation during the final stages of negotiations.

A group of investors from the United Arab Emirates, including state-backed MGX, is expected to be the largest participant in the round, the FT said. SoftBank Group Corp and venture capital firms including Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also plan to participate, according to the report.

OpenAI, Sequoia, Founders Fund and SoftBank declined to comment, the report said. MGX, Coatue and Andreessen Horowitz did not immediately respond to a request for comments, according to the FT.

The fundraising effort faces additional competition from Anthropic, which is preparing to go public next month at a valuation of at least US$1.5 trillion, the newspaper said. OpenAI, which raised US$122 billion in March, is seeking fresh capital to finance its vast computing ambitions as it prepares for a potential initial public offering of its own next year, according to the report.

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