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The cracks in the AI trade are getting harder to ignore, with the NASDAQ plunging nearly -4% on Friday. And this is certainly not the headline the artificial intelligence industry wanted heading into the weekend.
Late Friday, the Wall Street Journal reported that OpenAI, arguably the most recognizable company in the entire AI boom, has been forced to lower its fundraising ambitions after encountering considerably less investor enthusiasm than anticipated.
The company originally hoped to raise $30 billion at a valuation of approximately $1.4 trillion. Instead, it has secured just $11 billion in commitments so far, at a reduced valuation of $1.25 trillion. That’s a $150 billion haircut to its hoped-for valuation, or nearly 11%, and a fundraising effort that has attracted barely more than one-third of its original target.
Read more here.
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