New Delhi, Oct. 31 -- ChatGPT-maker OpenAI has reportedly pared down its funding round by $10 billion to $20 billion for valuation of $1.25 trillion, according to a report by the Financial Times.

This is a reduction from the previous target of raising $30 billion for a valuation of $1.4 trillion, as per a Reuters report.

It added that the Sam Altman led AI startup has slashed the funding round target to complete the process before Anthrpic's IPO so as to make the most of a largely similar investor base.

Reuters noted that US tech stocks fell amid worries over AI spending by tech companies - the Nasdaq index slumped 2.9% on Friday, down 7.8% from its all-time closing high on 6 October.

According to a report by Traders Union, investors ...