OpenAI is now pursuing up to $20 billion in its latest funding round, down from an initial $30 billion target, with a Friday deadline for investor commitments. The Financial Times first reported the reduction and the proposed $1.25 trillion post-money valuation. Some investors have decreased their allocations.
Investors from the United Arab Emirates are leading the round, with Coatue also participating.
The pullback reflects intensifying skepticism over whether tech giants' massive investments in AI infrastructure will generate adequate returns. On Friday, AI-linked stocks declined sharply: Intel fell 25 percent after issuing weak revenue guidance, Micron dropped 5.5 percent, and Nvidia fell 4 percent.
The pressure extends to the companies driving AI capex. Microsoft, Alphabet, and Amazon all disclosed capital expenditure figures or forecasts last week that fell short of analyst expectations. Alphabet had its worst trading day on Thursday after search revenue missed projections. Philipp Schindler, Alphabet's chief business officer, attributed part of the shortfall to lower monetization within its AI Mode.
The sequence suggests a widening perception among investors that data center buildouts and GPU procurement are outpacing monetization pathways—a concern that extends to OpenAI's own capital raise.
