OpenAI cuts raise target to $20B at $1.25T valuation

OpenAI has slashed its target capital raise and valuation in response to the steep AI-related stock selloff, per the Financial Times. The company, which had been seeking to raise $30 billion at a $1.4 trillion valuation, is now looking to raise about $20 billion at a $1.25 trillion valuation.

• Anxiety over the AI boom has sent the Nasdaq 100 down about 10% in three weeks since its Oct. 6 record high, including a 4.5% drop on Friday.
• OpenAI faces competition for capital from Anthropic, which plans to go public in November and reportedly aims to raise as much as $100 billion at a $1.5 trillion valuation.
• OpenAI previously put off IPO plans until 2027.