On Saturday U.S. time, CNBC confirmed that OpenAI had lowered its fundraising target from about $30 billion to a maximum of $20 billion, at a post-money valuation of $1.25 trillion. The Financial Times first reported the figure, noting that the company had set last Friday as the deadline for investors to subscribe, and that some institutions had proactively scaled back their commitments.
The change in the offer itself signals a shift in direction. Just last month, the company was meeting with investors at a $1.4 trillion valuation; now it has proactively lowered that to $1.25 trillion and cut the fundraising target by a third.
In the same week, Alphabet had its worst trading day since going public, Nvidia fell 4%, Micron dropped 5.5%, and S&P downgraded Meta's outlook to negative, citing excessive capital spending and free cash flow turning negative for the first time. The Nasdaq fell 2.9% last Friday.
The fact that the most expensive assets in the primary market are starting to adjust their prices in response to the mood in the secondary market matters more than the fundraising itself. AI infrastructure draws money from the same pool of capital. When public markets start questioning returns, private-market valuations have to give way. $BTC and $NVDA are currently subject to the same risk-appetite switch.
The change in the offer itself signals a shift in direction. Just last month, the company was meeting with investors at a $1.4 trillion valuation; now it has proactively lowered that to $1.25 trillion and cut the fundraising target by a third.
In the same week, Alphabet had its worst trading day since going public, Nvidia fell 4%, Micron dropped 5.5%, and S&P downgraded Meta's outlook to negative, citing excessive capital spending and free cash flow turning negative for the first time. The Nasdaq fell 2.9% last Friday.
The fact that the most expensive assets in the primary market are starting to adjust their prices in response to the mood in the secondary market matters more than the fundraising itself. AI infrastructure draws money from the same pool of capital. When public markets start questioning returns, private-market valuations have to give way. $BTC and $NVDA are currently subject to the same risk-appetite switch.
