OpenAI trims valuation target as it nears funding round of up to $30 billion

OpenAI lowers valuation target, raises up to $30 billion

OpenAI is close to closing a new round of up to $30 billion, with its valuation target cut from $1.4 trillion to $1.25 trillion. The Financial Times says demand is weaker than in earlier rounds, with some investors feeling stretched after large prior commitments. UAE investors and Coatue lead the round, framed as bridge funding ahead of a potential IPO. CNBC also reports OpenAI is negotiating a commercial deal for extra compute through the UAE.

Why it matters: OpenAI lowered its valuation target to get the round done, and the Financial Times ties softer demand to investors already stretched by earlier large commitments.