OpenAI cuts valuation target by $150 bn to $1.25 tn | Why it has scaled back its funding ambitions ahead of IPO

OpenAI has lowered its valuation target by $150 billion to $1.25 trillion as it nears the final stages of negotiations for a fresh funding round of up to $30 billion, against a backdrop of investor concerns over massive spending on artificial intelligence. The ChatGPT maker had discussed a valuation of $1.4 trillion during the talks, according to people familiar with the matter cited by Bloomberg. The discussions are ongoing, and the final terms could change, the people said. The proposed valuation excludes the new capital being raised. OpenAI most recently raised $122 billion in March at an $852 billion valuation. Coatue Management is in talks to co-lead in the round, according to the people.