OpenAI pares fundraising goal, now seeking up to $20 billion in latest round

The funding round is still in progress and has not closed, so the figures are subject to change, a person directly familiar with the deal told CNBC.

The top 3

Mechanisms behind the lowered target: The reduction in the fundraising goal occurs amidst heightened scrutiny from investors regarding the ROI of massive spending on AI hardware and data centers. As big tech companies report capital expenditures below analyst expectations and experience market volatility, private funding rounds are increasingly reflecting this caution.
Market context and investor sentiment: Recent poor market performance for major AI-linked firms, including Intel, Micron, and Nvidia, has tempered the aggressive investment pace seen in previous years. The pivot suggests a transition from 'growth-at-all-costs' to a phase where investors are prioritizing evidence of monetization and efficiency in AI models.