OpenAI Reduces Funding Target to $20 Billion

OpenAI has lowered its funding target from $30 billion to $20 billion and reduced its valuation from $140 billion to $125 billion. This decision comes in response to the recent sharp decline in artificial intelligence (AI) related stocks. OpenAI has postponed its initial public offering (IPO) plans to 2027, and this adjustment does not indicate a decrease in its valuation. The Nasdaq 100 index has fallen by 10% in three weeks, entering its third correction phase this year. This decline is attributed to disappointing performances from Intel and Amazon, leading investors to begin reassessing the value of AI companies. Competitor Anthropic is pushing for an IPO in November, creating a situation where both companies must compete for limited investment funds. Anthropic aims to raise up to $100 billion with a valuation of $150 billion. Concerns are growing in the market about whether AI companies can generate actual profits, and there are forecasts that the reduction in funding could impact the growth rate of emerging AI companies.