OpenAI Slashes Funding Round by a Third as AI Demand Cools
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Weeks after billing its latest raise as the final chance to buy in before an initial public offering, OpenAI has been forced into a swift climbdown, cutting the round by a third in the face of weak investor appetite. The desired valuation for OpenAI has slipped to $1.25 trillion from $1.4 trillion, while the ChatGPT maker is now chasing roughly $20 billion rather than the $30 billion it pursued last month, according to the Financial Times. Hitting even that lower figure may prove difficult, with the first close now expected to come in below $20 billion after several backers trimmed their allocations. Commitments were due Friday, and about $11 billion has been locked in so far, the Wall Street Journal reported, with some large investors responding tepidly.
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