OpenAI trims its funding target by $10 billion

Plus: New York bans unsafe chatbot behavior with kids; Anthropic files for Nasdaq listing with massive compute deals

Happy Halloween, and welcome to a Saturday edition where the biggest monsters might just be on the balance sheets.

FUNDING

💰 OpenAI trims its funding target by $10 billion

OpenAI has slashed the target for its latest funding round by $10 billion. OpenAI is now seeking about $20 billion in its latest funding round.

The details:

• OpenAI's desired valuation has dropped to $1.25 trillion from $1.4 billion.
• A consortium of UAE investors that includes state-backed technology fund MGX is expected to be the largest participant in the round.
• The tech-heavy Nasdaq index dropped 2.9% on Friday and is down 7.8% from its all-time closing high reached on October 6.

First reported by reuters.com, 4h ago · reuters.com · investing.com · kelo.com · startupfortune.com · tradingview.com · news.google.com

POLICY

🛡️ New York bans unsafe chatbot behavior with kids

Eight states sued OpenAI earlier this month, claiming the company's chatbot model violated state consumer protection laws by hurting children and deceiving adults. The New York law also outlaws chatbot messages that use flattery, involve sexually explicit material, or encourage secrecy or unhealthy behavior.

The details:

• New York enacted legislation signed by Governor Kathy Hochul that outlines a dozen definitions of 'unsafe AI companion features' prohibited when a companion chatbot interacts with a child under 18.
• A violation of New York's law could expose a chatbot developer to a lawsuit by the state attorney general's office, with penalties including monetary damages, shutting down the chatbot, and destroying data.
• The New York law takes effect on Jan. 1.

First reported by wral.com, 54h ago · wral.com · thestar.com.my · timesofindia.indiatimes.com · news.google.com · news.google.com · news.google.com

IPO

📄 Anthropic files for Nasdaq listing with massive compute deals

Anthropic's IPO filing reveals up to $120.5 billion in compute contracts with SpaceX. Anthropic held more than $112 billion in cash as of June.

The details:

• Anthropic has taken on roughly $417 billion in minimum future payments tied to compute and data center infrastructure since the end of 2025.
• Anthropic plans to list on Nasdaq under the symbol 'ANT'.
• Anthropic's most recent funding round valued it at $965 billion.

First reported by qz.com, 87h ago · qz.com · finance.yahoo.com · news.bloombergtax.com

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