OpenAI reportedly lowers funding target for new round to $20 billion
For the vendor-risk head at a regional bank
OpenAI has lowered its funding target to $20 billion from $30 billion, the Financial Times reported on Friday, Oct. 30, as quoted by TechCrunch; OpenAI had not commented when TechCrunch published on Oct. 31.1
OpenAI was previously reported to be raising $30 billion at a $1.4 trillion valuation, and then at a $1.25 trillion valuation, ahead of a planned IPO, according to TechCrunch.1 A follow-up story in The Wall Street Journal said some large investors gave the fundraising a "tepid" response, according to TechCrunch's summary; TechCrunch wrote that the company's reported funding challenges could be blamed, in part, on bad timing, as Wall Street investors have become wary of heavy AI infrastructure spending, leading to a sell off of tech stocks.1
The Wall Street Journal reported that OpenAI has secured $11 billion so far, according to TechCrunch's account of that follow-up story.1
The Financial Times said the first close is expected to be lower than $20 billion, and that a group of investors from the United Arab Emirates will lead the round.1
The FT said a subsequent retail offering for wealthy individuals could bring the total to the $20 billion target.1
TechCrunch also noted that Anthropic's planned IPO could be facing challenges; it gave no details. Neither the FT nor WSJ reports were available directly, and OpenAI has not confirmed the figures.1
If OpenAI raises less than planned, banks and fintechs that depend on it as an AI vendor should check how its pricing and product roadmap could change, though $11 billion in hand is still substantial. Switching to Anthropic is not an obvious hedge if it faces similar market conditions, so vendor risk plans should cover more than one provider's funding.
Our take. OpenAI asked for $30 billion and reportedly has $11 billion, with wealthy individuals invited to fill the gap. Your contract assumes the vendor stays the same company at the same price. Read the exit terms now, while nothing is wrong.
Action. Vendor risk: Pull OpenAI contracts, confirm exit, data-return and price-change terms, and test fallback to a second model provider.
From our records
- ChatGPT Enterprise (OpenAI)vendor · banks using it (14) Morgan Stanley, BNY, Customers Bank · alternatives Microsoft Copilot, Claude, Gemini Enterprise
- Claude (Anthropic)vendor · banks using it (21) Goldman, JPMorgan, BankUnited · alternatives Microsoft Copilot, ChatGPT Enterprise, Gemini Enterprise
Sources
- ReportOpenAI reportedly lowers funding target for new round | TechCrunch TechCrunch