The downward revision arrives amid an intense sector-wide sell-off that hammered major chipmakers and hardware suppliers on Friday. Big tech players, including Microsoft, Amazon, and Alphabet, have simultaneously disappointed analysts with recent capital expenditure figures and forecasts despite sustained data center expansion. Alphabet specifically suffered its worst single-day trading drop on record following weaker-than-expected search revenue, which executives linked to monetization challenges in its AI Mode. The fundraising round remains active, leaving final figures and overall terms subject to change.
Key points
Widespread investor skepticism over artificial intelligence infrastructure returns is act…: Widespread investor skepticism over artificial intelligence infrastructure returns is actively dampening venture financing targets.
Mega-cap technology firms face intense market pushback after reporting capital expenditur…: Mega-cap technology firms face intense market pushback after reporting capital expenditure figures that missed Wall Street projections.
Slower monetization of advanced consumer AI interfaces is directly threatening traditiona…: Slower monetization of advanced consumer AI interfaces is directly threatening traditional digital advertising and search revenue models.
Sources checked by our analysis pipeline: 1
OpenAI is seeking to raise up to $20 billion in a new funding round, CNBC confirmed on Saturday, paring back its earlier target of up to $30 billion.
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, asking to remain unnamed as they were not authorized to discuss the details publicly.
OpenAI did not immediately respond to a request for comment.
The Financial Times first reported that OpenAI had reduced its target for the round by $10 billion, and said the company would seek a post-money valuation of $1.25 trillion. According to FT, the ChatGPT developer set a Friday deadline for investors to commit to the newest round, with some investors opting to reduce their allocations.
Investors from the United Arab Emirates are leading the round alongside Coatue, as CNBC previously reported.
News that the ChatGPT developer slashed its funding round follows a week when investors asked whether big tech firms' spending on AI, especially to build out data centers and snap…
Entry-level roles across sectors are rapidly evolving as automation takes over routine baseline tasks, shifting employer expectations toward analytical oversight and quality assurance. Prime Minister Lawrence Wong has urged businesses to intentionally mentor and train junior hires to preserve foundational career pathways. In response, universities and state agencies are expanding extended internship models so incoming professionals can cultivate necessary judgment and industry experience.
OpenAI has introduced a midrange model designed to balance high operational speed with affordability for daily workplace duties like drafting proposals and navigating software. Sitting between the premium Sol and budget Luna tiers, it targets developers and subscribers who require strong visual reasoning without top-tier operational costs. The release aims to deliver competitive computer use and technical communication at significantly reduced pricing.
Independent developers have introduced an optimized software implementation designed to bypass traditional hardware barriers for advanced artificial intelligence. By leveraging solid-state storage alongside consumer GPUs, the project enables individuals to experiment locally with cutting-edge architectures without enterprise clusters. This approach broadens access to complex systems for independent researchers and hobbyists working on restricted budgets.