OpenAI is seeking to raise as much as $20 billion in its latest funding round, $10 billion less than the roughly $30 billion it originally targeted, according to reports from CNBC and the Financial Times. The round values the San Francisco-based company behind ChatGPT at $1.25 trillion post-money, down from the $1.4 trillion valuation it previously sought — a reduction of $150 billion. A post-money valuation reflects a company's worth including the new capital being raised.

BREAKING: OpenAI cuts its funding target by $10B to $20B and slashes its valuation target from $1.4T to $1.25T, per FT. The move comes as investor concerns over AI spending grow and tech stocks face a major sell-off. pic.twitter.com/5vyd0x7irU
— Bull Theory (@BullTheoryio) October 31, 2026

The revised figures reflect mounting investor concern about the pace of AI spending, arriving amid a broad sell-off in technology stocks. The round has not closed, and a person familiar with the deal told CNBC the figures could still change. OpenAI did not immediately respond to a request for comment.

Investors Trim Commitments After Friday Deadline

OpenAI had set a Friday (October 31) deadline for investors to commit capital. Some backers chose to reduce their allocations, meaning the first close is expected to bring in less than $20 billion. CNBC confirmed the lower target on Saturday, and the round remains open. Because the figures could still change, the size of the first close — and any further revisions before the round finishes — will be watched as a measure of how much private capital remains willing to back AI companies at trillion-dollar valuations.

Who Is Putting Money In

Investors from the United Arab Emirates are leading the round alongside Coatue. The UAE group includes the state-backed technology fund MGX and is expected to provide the largest share of the funding. As part of the deal, OpenAI would also receive the option to lease newly built computing capacity in the region. Such an arrangement would link the fundraising directly to securing the computing capacity OpenAI needs as it scales.

Other prominent venture firms are expected to take part, including Founders Fund, Sequoia Capital and Andreessen Horowitz — a lineup that reads like a who's who of Silicon Valley capital.

OpenAI is also racing the clock. Rival Anthropic, the developer of the Claude chatbot, is expected to make its stock market debut soon, and both companies are chasing a similar pool of investors. OpenAI is planning an IPO in 2027. Anthropic's debut will offer a public-market benchmark for AI company valuations ahead of that planned listing. If investors commit less than the revised goal, the company could enter that year with less fresh capital than it wanted, even as its computing needs keep growing.

A Rough Week for AI Stocks

The Nasdaq 100 dropped 3.46% on Friday as investors questioned whether enormous spending on artificial intelligence will pay off. Intel fell 25% on weak revenue guidance, Micron slid 5.5%, and chipmaker Nvidia lost 4%.

Microsoft, Alphabet and Amazon have spent heavily on AI infrastructure in recent years, and all three issued capital spending figures or forecasts last week that came in below analyst estimates. Alphabet suffered its worst trading day ever on Thursday after search revenue missed expectations, with chief business officer Philipp Schindler saying lower monetization in AI Mode played a part. Future capital-spending guidance from these cloud providers will be watched for signs of whether AI infrastructure budgets hold steady — spending that flows through as revenue to chip and data-center suppliers across the industry.

Source: CoinCentral