OpenAI slashes funding target by $10bn as tech anxieties mount

OpenAI has cut its funding target by $10 billion, according to a Financial Times report, as concerns around the broader technology sector weigh on fundraising ambitions. The report indicates that the company is seeking less capital than it had previously targeted.

OpenAI is the artificial intelligence company behind ChatGPT and other generative AI systems. It has become one of the most closely watched companies in the sector as demand for AI products has driven intense interest in the computing infrastructure, research and development needed to build and operate large models.

The reduction underscores how investor appetite for major technology investments can shift alongside wider market anxieties. Fundraising conditions are particularly significant for AI companies because developing and running advanced models can require substantial spending on data centers, specialized chips and technical talent.

The Financial Times first reported the change in OpenAI’s funding target. The available report does not specify the company’s revised target, the timing of the fundraising effort or the investors involved.