OpenAI Cuts Latest Funding Round Target by $10 Billion
According to a report by the UK's Financial Times, OpenAI has cut the target for its latest funding round by $10 billion and now plans to raise about $20 billion at a valuation of $1.25 trillion, down from last month's plan to raise $30 billion. The adjustment comes as tech stocks fell sharply and concerns grew over the scale of AI investment and the pace of returns; that day the Nasdaq Composite fell 2.86% and the Philadelphia Semiconductor Index dropped 7.20%.
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Against the backdrop of a sharp tech stock selloff and growing concerns over AI returns, OpenAI has lowered its funding target, which readers can use to gauge how market sentiment is affecting the pace of AI investment.
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Last night and this morning (Beijing time, October 31), major U.S. stock indices plunged across the board, with technology stocks hit by large-scale selling. As of the close, the Nasdaq Composite fell 2.86%, and the more tech-heavy Nasdaq 100 fell 3.46%; the Dow fell 1.09%, the S&P 500 fell 1.82%, and the Russell 2000 fell 1.66%.
On Friday, U.S. chip stocks fell across the board, with the Philadelphia Semiconductor Index down 7.20%, its biggest drop since June. Among them, Intel plunged more than 28%, marking its largest single-day decline ever. The company's quarterly revenue outlook was weaker than analysts expected, demand for personal computer processors was sluggish, and its highly profitable data center component business also faced supply chain problems.
Among other chip stocks, Qualcomm fell more than 11%, Advanced Micro Devices (AMD) fell more than 10%, ARM fell nearly 10%, Applied Materials fell more than 7%, and ASML fell more than 6%. The memory sector declined, with SanDisk down more than 13%, SK Hynix down nearly 8%, Seagate Technology and Western Digital down more than 7%, and Micron Technology down more than 5%; optical communications concept stocks also pulled back sharply, with Coherent down more than 11%, Marvell Technology down more than 10%, and Lumentum and Credo Technology down more than 8%.
Large technology stocks also adjusted collectively: SpaceX fell more than 6%, Nvidia fell more than 4%, Microsoft, Meta, Google, Amazon and Apple fell more than 1%, and Tesla fell 0.87%. Apple's market value once again overtook Nvidia's, making it the world's most valuable company. Currently, Apple and Nvidia have market values of $5.03 trillion and $4.93 trillion, respectively.
Friday's market selloff mainly stemmed from disappointing results from several large technology companies, including Intel and Amazon. Previously, earnings reports from companies such as Google and Meta were also disappointing. These reports reignited market concerns about AI spending and the outlook for returns.
BTIG chief market technician Jonathan Krinsky wrote in a report: "The bigger question now is whether the weakness in tech stocks will spread to the broader market, or whether funds will continue to rotate among different sectors." Matt Maley, chief market strategist at Miller Tabak & Co, said that if major stock indices begin to fall, investors may choose to move into cash rather than rotate into other sectors.
It is worth noting that the UK's Financial Times reported that, as technology stocks fell sharply and concerns grew over the scale of AI investment and the pace of returns, OpenAI has lowered its latest funding round target by $10 billion and now plans to raise about $20 billion at a valuation of $1.25 trillion, down from last month's $30 billion fundraising plan.
(Source: Securities Times) Body middle Embedded advertisement