OpenAI has announced a new financing effort that could bring in as much as $20 billion, according to a CNBC report on Saturday. The figure represents a reduction from an earlier ambition of up to $30 billion. The round remains open, and a source close to the deal, who asked to stay anonymous, cautioned that the numbers may still shift before the process concludes.
The Financial Times first disclosed that the target had been cut by $10 billion, and that OpenAI is aiming for a post-money valuation of roughly $1.25 trillion. The publication also noted that the company set a Friday deadline for investors to lock in their commitments, with some participants choosing to lower the size of their contributions.
Investors from the United Arab Emirates are reported to be leading the current round, working alongside the venture-capital firm Coatue. Both parties were highlighted in earlier CNBC coverage as key contributors to the financing effort. Their involvement underscores the growing interest of sovereign-wealth and private-equity players in backing large-scale AI development projects.
The announcement arrives after a week in which investors voiced doubts about whether the massive spending by major technology firms on AI infrastructure will generate sufficient returns. Shares of AI-related companies fell on Friday, with Intel dropping 25 percent after weak revenue guidance, Micron sliding 5.5 percent, and Nvidia slipping 4 percent.
Microsoft, Alphabet’s Google and Amazon have each been on a capital-expenditure ramp to meet surging demand for data-center capacity and graphics processors. However, each company released spending forecasts last week that fell short of analyst expectations, adding pressure to the broader AI market narrative for investors.
Alphabet experienced its worst trading day on Thursday after search revenue missed forecasts, prompting a sharp sell-off. Chief Business Officer Philipp Schindler attributed part of the shortfall to weaker monetization within the company’s AI Mode, highlighting the challenges of turning new AI features into reliable revenue streams.