SAN FRANCISCO, California: OpenAI has cut the target for its latest funding round by $10 billion as technology stocks come under pressure from concerns over heavy artificial intelligence spending, the Financial Times reported.

The ChatGPT maker is now seeking about $20 billion and is targeting a valuation of $1.25 trillion, the newspaper reported, citing people familiar with the matter.

OpenAI set a Friday deadline for investors to commit to the funding round, but the first close is expected to raise less than $20 billion after some investors reduced their allocations, according to the report.

A consortium of UAE investors that includes state-backed technology fund MGX is expected to be the biggest participant in the round. As part of the deal, OpenAI would gain the option to lease newly developed computing capacity in the region, the FT reported.

Venture capital firms including Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to participate.

Wealthy individuals will have the option to invest in a subsequent retail offering at a $1.25 trillion valuation, according to the report.

OpenAI, MGX, Coatue, Sequoia Capital and Andreessen Horowitz did not immediately respond to requests for comment outside regular business hours. Founders Fund could not be reached for comment.

U.S. technology stocks have suffered a rout amid growing concerns over massive spending on artificial intelligence. The tech-heavy Nasdaq fell 2.9% Friday and is down 7.8% from its all-time closing high reached on October 6.

OpenAI, which is pursuing a listing in 2027, has been seeking to close the funding round partly to get ahead of Anthropic's imminent listing, as the two companies are tapping a similar investor base.