OpenAI cuts valuation target by $150 bn to $1.25 tn | Why it has scaled back its funding ambitions ahead of IPO

OpenAI has lowered its valuation target by $150 billion to $1.25 trillion as it nears the final stages of negotiations for a fresh funding round of up to $30 billion, against a backdrop of investor concerns over massive spending on artificial intelligence.

The ChatGPT maker had discussed a valuation of $1.4 trillion during the talks, according to people familiar with the matter cited by Bloomberg. The discussions are ongoing, and the final terms could change, the people said.