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AI NewsOpenAI reportedly lowers funding target for new round

OpenAI reportedly lowers funding target for new round

12:07 AM IST · November 1, 2026

OpenAI reportedly lowers funding target for new round

OpenAI’s latest funding round isn’t quite living up to expectations, according to multiple news reports. OpenAI was previously reported to beraising $30 billion at a $1.4 trillion valuation, and thenat a $1.25 trillion valuation, ahead of a planned IPO. ButThe Financial Times reported Fridaythat the company has subsequently lowered its funding target to $20 billion, with a first close that’s expected to be even lower than that. The round will be led by a group of investors from the United Arab Emirates, the FT said. A subsequent retail offering for wealthy individuals could bring the total funding amount to the $20 billion target. Afollow-up story in The Wall Street Journaloffered more details, namely that the company has secured $11 billion so far, and that its fundraising efforts had met with a “tepid” response from some large investors. TechCrunch has reached out to OpenAI for comment. The company’s reported funding challenges could be blamed, in part, on bad timing, asWall Street investors have become wary of heavy AI infrastructure spending, leading to a major sell off of tech stocks. And Anthropic’s planned IPO could befacing challenges, too.

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OpenAI reportedly lowers funding target for new round

OpenAI reportedly lowers funding target for new round

OpenAI’s latest funding round isn’t quite living up to expectations, according to multiple news reports. OpenAI was previously reported to beraising $30 billion at a $1.4 trillion valuation, and thenat a $1.25 trillion valuation, ahead of a planned IPO. ButThe Financial Times reported Fridaythat the company has subsequently lowered its funding target to $20 billion, with a first close that’s expected to be even lower than that. The round will be led by a group of investors from the United Arab Emirates, the FT said. A subsequent retail offering for wealthy individuals could bring the total funding amount to the $20 billion target. Afollow-up story in The Wall Street Journaloffered more details, namely that the company has secured $11 billion so far, and that its fundraising efforts had met with a “tepid” response from some large investors. TechCrunch has reached out to OpenAI for comment. The company’s reported funding challenges could be blamed, in part, on bad timing, asWall Street investors have become wary of heavy AI infrastructure spending, leading to a major sell off of tech stocks. And Anthropic’s planned IPO could befacing challenges, too.

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Ollie, a privacy-focused AI assistant, is shutting down

Ollie, a privacy-focused AI assistant, is shutting down

Ollie, a startup whose mission was to deliver an AI assistant that respected its users’ privacy, says that it will be shutting down in a week. Bill Lennon, the company’s co-founder and CEO,took to Xon Friday to deliver the news, noting that the app will officially shut down on November 6. “I’m really proud of what we accomplished,” Lennon said. “We built an incredible personal assistant with a small team, and learned a ton. I’m grateful to our amazing team, our users, our investors, and everyone who supported us on this journey.” The text-based AI assistant markethas explodedover the past year, as the increasingly powerful models that undergird such applications have made them significantly more useful for daily tasks. Ollie, which discussedits $7.5 million seed roundled by Khosla Ventures with TechCrunch in September, offered a subscription-based model. The assistant was focused on helping families stay connected and organized. The app connected to a user’s email and calendar, while also providing integrated functions to help with appointment bookings, meal planning, and bill payments. The company had also planned to eventually move into household budgeting. Crucially, Ollie was one of the first mainstream apps that managed to achieve SOC 2, a privacy compliance standard that companies can attain via an independent audit. Unfortunately, user privacy has never been a hugely profitable aspect of the tech industry. If anything, many new digital assistants present unique privacy challenges for their users — as companies likeInstinct have shown. Ultimately, the pressures of the burgeoning AI industry took a toll on the company, Lennon said. “We got close, but ultimately couldn’t keep up,” he added. “With Muse, Instinct, and others entering the space, it became harder to stand out, grow, and raise the capital we needed to succeed.” Ollie’s customers will receive instructions on how to export data and receive refunds in the coming days, Lennon added.

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Nvidia weighs playing the cosigner for Nscale’s AI data center in West Virginia

Nvidia weighs playing the cosigner for Nscale’s AI data center in West Virginia

Nvidia is in talks to guarantee billions in debt financing for AI cloud provider Nscale’s planned Anthropic data center in West Virginia, The Informationreported Thursday. Bloomberg latercorroboratedthe report. Anthropic has signed a $44.6 billion contract for the project’s first building alone, according to Nscale’sIPO filing. In essence, the chipmaker would be co-signing a customer’s loans, a sign of how hard the AI industry is working to keep its buildout plans afloat as investorsgrow jitteryabout the amounts of money involved. The proposed arrangement would help Nscale secure financing for the electricity and construction costs of its West Virginia campus. Under what’s known as a residual value guarantee, Nvidia would step in if Nscale defaulted on construction payments, temporarily take over the facility, and help find a buyer and new tenant,according to The Information. Nvidia’s earlier support for cloud providers has mostly covered leases and chip purchases, not construction. The stakes are high for Nscale, which isseeking to go publicat a valuation of up to $35 billion despite growing concerns about its ability to deliver on ambitious data center projects. Anthropic’s contract with Nscale covers the first 460-megawatt building at Nscale’s West Virginia campus, which is expected to use Nvidia’s next-generation Vera Rubin chips. The companies are also discussing asecond dealworth roughly $45 billion for another building. Nscale has struggled to get its projects off the ground. The company had about25,000 advanced AI chips running in August, a fraction of the nearly 500,000 it plans to deploy. Its West Virginia campus has run into trouble of its own. Runoff from the construction site hasflooded nearby homesmore than once. In September,after months of negotiations, the project won state certification. This month, Microsoftpulled outof a planned Nscale site in England after grid power for it was pushed into the 2030s. Nvidia has been a major financial backer of the sector,extending roughly $170 billionin investments and credit support to neoclouds and large customers, according to The Information. That includes $1 billion in convertible financing committed to Nscale in September. Neoclouds, which rent out AI computing power without a cash-rich core business behind them, have come under pressure from investors. Shares of CoreWeave, Nebius, and IREN had each fallen more than 30% in October as of last week,CNBC reported. The proposed guarantee would deepen Nvidia’s financial ties to Nscale while helping secure a major customer for its chips. Anthropic, one of the largest buyers of AI computing power, has spread its infrastructure spending across multiple chipmakers. One investor told The Information that Anthropic’s involvement likely explains Nvidia’s interest in keeping Nscale’s project on track. The discussions also come as Anthropicfaces questionsabout how it will finance its own rapid expansion. The company filed to go public this week, but Blackstone has warned investors that Anthropic may receive abelow-investment-gradecredit rating after its IPO. A junk rating would raise Anthropic’s borrowing costs and could push it to keep relying on stronger partners to back its debt.

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