According to TechCrunch, which summarized the reports, OpenAI had previously been reported to be raising $30 billion at a $1.4 trillion valuation, and later at a $1.25 trillion valuation, ahead of a planned IPO. On Friday the Financial Times reported that the company has lowered the target to $20 billion, and that the round's first close is expected to come in below that.
According to the FT, the round will be led by investors from the United Arab Emirates, and a separate offering for wealthy individuals could bring the total to the $20 billion target. The Wall Street Journal later reported that $11 billion has been secured so far and that some large investors responded tepidly.
The reports come as Wall Street investors have grown wary of heavy spending on AI infrastructure, and a sharp sell-off has hit technology stocks. OpenAI did not respond to TechCrunch's request for comment, and it is not known at what valuation the smaller round will close.