OpenAI lowered its fundraising target in a new investment round to as much as $20 billion from as much as $30 billion. CNBC reported on Oct. 31 that the round has not closed, so the amount raised could change.
The Financial Times reported OpenAI cut the target by $10 billion and put forward a post-money valuation of $1.25 trillion.
Investors had to decide by Friday whether to take part in the round, and some reduced their allocations.
The fundraising is being led by Cotu, with investors from the United Arab Emirates.
OpenAI's target adjustment comes as market concerns have grown about the profitability of big tech AI investment.
Some investors are questioning whether heavy spending on expanding data centres and securing GPUs will lead to sufficient returns.
On Oct. 30, shares of AI-related companies were also weak. Intel fell 25 percent after issuing weak revenue guidance, while Micron slid 5.5 percent and Nvidia fell 4 percent.
Microsoft, Google and Amazon have increased spending in recent years to meet rising demand for AI infrastructure. Last week, their capital expenditure figures and outlooks all fell short of market expectations.
Chi-gyu Hwang
delight@d-today.co.kr