ChatGPT maker OpenAI slashes its funding target by $10bn as fears over AI spending spark a US tech stock rout

OpenAI is now seeking to raise $20bn rather than the $30bn it had originally targeted, after cutting its latest funding round by $10bn following a retreat by some investors who reduced their allocations. The company set a Friday deadline for commitments, but the "first close" is expected to fall short even of the revised $20bn figure. The cut comes as US tech stocks suffer a broad sell-off driven by fears over runaway AI spending.

OpenAI had been racing to close the round ahead of rival Anthropic's expected stock market debut in mid-November, with the two firms competing for the same pool of investors.

House Democrats separately piled in on OpenAI, accusing the Justice Department of overstepping its authority by backing the firm in a landmark copyright lawsuit brought by The New York Times and other publishers.