OpenAI reportedly cuts funding target to $20 billion

The Financial Times reported that OpenAI has reduced the target for its latest fundraising round from $30 billion to about $20 billion, while seeking a $1.25 trillion valuation rather than the previously discussed $1.4 trillion. The change reportedly follows smaller commitments from some investors during a broader selloff in technology stocks. A valuation is not cash in the company’s bank account; it is the price investors are collectively willing to put on the business. Even the revised round would be enormous, but the retreat suggests that investors are becoming more demanding about whether the vast spending needed for AI chips, data centers, and model development can turn into durable returns.