Update, 31 October

This story has been updated with The Wall Street Journal's report that OpenAI has secured about $11bn so far, and with CNBC's confirmation of the $20bn target.

OpenAI has secured about $11bn for its latest funding round, less than half of the $30bn it first sought, people familiar with the matter told The Wall Street Journal's Berber Jin. Interest from some large investors was “tepid”, the WSJ reported.

The company now aims to raise up to $20bn. The Financial Times first reported the $10bn cut on Friday. CNBC confirmed the new target for the OpenAI funding round on Saturday, citing a person directly familiar with the deal. The round is still open, so the figures could change, that person said.

Family offices and wealthy individuals

The round values OpenAI at $1.25tn after the new money, the FT reported. The company had first pitched $30bn at $1.4tn, then cut the valuation last week.

OpenAI told shareholders it expects to raise more in the coming weeks, the WSJ reported. It will target family offices and high-net-worth individuals. The FT reported a later offering for wealthy individuals at the same valuation.

OpenAI set Friday as the deadline for investors to commit, and some reduced their commitments, the FT reported. It said the first close will likely raise less than $20bn.

Investors from the United Arab Emirates, including the state-backed fund MGX, will likely be the largest backers, according to the FT. SoftBank, Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz also plan to invest, it said.

OpenAI did not immediately respond to CNBC on Saturday. TNW has not independently verified the reports.

Ahead of Anthropic

OpenAI plans to list as soon as early next year, the WSJ reported. Anthropic plans to go public next month, at a valuation of at least $1.5tn, the FT reported. Anthropic made its IPO filing public on Monday.

The cut comes after a week of falls in AI stocks. Alphabet's shares fell 12% on Thursday after its results.