OpenAI slashes funding target by $10bn as tech anxieties mount

✦ Meridian Analysis

OpenAI has cut its fundraising target by $10 billion, now seeking roughly $20 billion at a $1.25 trillion valuation, according to a rumour reported by the Financial Times. The deal is still at the speculation stage; no formal mandate, signed term sheet or regulatory filing has been disclosed. The identity of prospective investors has not been revealed. Earlier this month Meridian reported that OpenAI was negotiating a $30 billion funding round, and a few weeks earlier Nvidia and SoftBank disbursed a final €17.8 billion committed to the firm. Deal professionals will be watching for the eventual price per share, the final size of the equity tranche, and the identity of lead advisers and anchor investors, none of which have been disclosed. Confirmation of regulatory approvals, the timeline for closing and whether the raise will be conducted as a standalone equity issue or combined with debt components will also be key pieces of information to emerge.

The Meridian Weekly