OpenAI Slashes Funding Round by a Third as AI Demand Cools

PYMNTS reports that, according to the FT, OpenAI has cut the target for its current funding round from $30 billion to $20 billion[2] and is seeking to raise the funding at a valuation of $1.25 trillion, down from the previous $1.4 trillion[2].CNBC reports that, according to the FT, the ChatGPT developer set a Friday deadline for investors to commit to the newest round, with some investors opting to reduce their allocations[3].According to PYMNTS, The Wall Street Journal reported Friday, citing unnamed sources, that OpenAI had secured about $11 billion in commitments[2]. PYMNTS adds that the Journal said OpenAI had received "tepid interest" from some large investors[2].BW Businessworld, citing the FT, reports that a consortium of investors from the United Arab Emirates, including state-backed technology investment fund MGX, is expected to emerge as the largest participant[4]. The outlet says Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to participate[4].According to The Next Web, Reuters has reported that OpenAI wants to close the round before Anthropic lists, because the two companies draw on similar investors[5].CNBC reports that AI-linked stocks sank on Friday, with chip maker Intel down 25% on lackluster revenue guidance, Micron down 5.5%, and Nvidia falling 4%[3].PYMNTS says OpenAI did not immediately reply to PYMNTS' request for comment on the reports.[2]