OpenAI cuts funding target to $20 billion

OpenAI has reduced its fundraising target for its latest round to about $20 billion from $30 billion, while lowering its desired valuation to $1.25 trillion from $1.4 trillion, according to people familiar with the matter cited in reports. The revised figures describe the company’s target, not the amount already secured or the final proceeds of the round. Some investors have reduced their commitments, and the round’s first close is expected to come in below $20 billion, according to the same reporting. The Wall Street Journal separately reported that OpenAI had secured about $11 billion so far. That figure represents funds secured to date, not a confirmed first-close total. The reports did not establish the final amount raised or whether a further offering would take place. One account said wealthy individuals could be offered an opportunity to invest in a subsequent retail offering at a $1.25 trillion valuation, potentially adding to the round. The reported October 30 deadline for investor commitments was not confirmation that the round had closed. Investors from the United Arab Emirates, including state-backed technology fund MGX, are expected to be the largest participants,...