OpenAI has secured approximately $11 billion in commitments for its latest funding round, falling significantly short of its initial $30 billion target, according to individuals familiar with the matter. The financing round values the artificial intelligence company at about $1.25 trillion, below the $1.4 trillion valuation the firm had aimed to achieve.

The fundraising challenges come amid heightened market caution surrounding the AI sector, particularly following disappointing earnings reports from major technology companies such as Google, Amazon, and Intel. These developments have contributed to a broader tech selloff, which in turn has made investors more selective about backing AI ventures and their terms.

Despite these setbacks, OpenAI intends to continue raising capital over the coming weeks. The company has indicated plans to focus on securing investments from family offices and high net-worth individuals in an effort to boost funding to as much as $20 billion. Sources suggest this approach represents a recalibration from initial targets as OpenAI prepares for a potential initial public offering, possibly as early as next year.

OpenAI, known for products such as ChatGPT and Codex, is also advancing efforts to accelerate revenue growth to better compete with its primary rival, Anthropic. The company’s strategy reflects increased pressure to demonstrate financial performance amid shifting investor sentiment in the fast-evolving AI landscape.

While the funding round underperformance marks a departure from earlier optimism surrounding AI investments, industry watchers note that OpenAI remains a key player in the sector. The firm has previously benefited from strong interest driven by its pioneering work in generative AI technologies.

OpenAI has not publicly commented on the specifics of the fundraising round.