Report says AI market is in a slump, OpenAI cuts fundraising target by $10 billion

According to the Financial Times, citing people familiar with the matter, OpenAI has lowered its fundraising target for this round from $30 billion to about $20 billion, and its valuation from $1.4 trillion to $1.25 trillion. Some investors have reduced their commitments to OpenAI's current fundraising round, which the report says reflects growing investor unease about the huge sums flowing into AI, and the Nasdaq 100 index fell 3.5% on Friday. The report also says investors including the UAE state-backed MGX are expected to be the largest participants in this round, with SoftBank, Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also planning to take part. The fundraising also faces competition from Anthropic, which is preparing to list next month at a valuation of at least $1.5 trillion. OpenAI raised $122 billion in March this year, and is raising new funds for its compute spending and preparing for a possible IPO next year.