OpenAI has cut its fundraising target by US$10 billion to about US$20 billion amid an AI-related tech selloff, according to a report. Its target valuation fell to US$1.25 trillion from US$1.4 trillion.

A United Arab Emirates consortium that includes MGX, an Abu Dhabi state-backed AI and advanced technology fund, is expected to be the largest participant.

The first close is expected to raise less than US$20 billion after some investors cut their allocations. Coatue and Sequoia Capital are also expected to participate, according to the report.

The deal would give OpenAI the option to lease newly developed computing capacity in the UAE.

OpenAI also set a deadline of November 6 for investor commitments, according to the report. Wealthy individuals would be able to invest later through a retail offering at the same US$1.25 trillion valuation.

OpenAI, MGX, Coatue, Sequoia Capital, and Andreessen Horowitz did not immediately respond to requests for comment.

🔗 Source: Reuters

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