OpenAI Reportedly Cuts Funding Round Target to About $20 Billion as AI Stocks Slide

OpenAI has reportedly lowered the target of its current funding round by $10 billion to about $20 billion, according to the Financial Times, which cited people with knowledge of the matter. The Next Web, which relayed the report on October 30, said it had not independently verified it. OpenAI did not immediately respond to requests for comment.

What is reported

• The round still values OpenAI at $1.25 trillion. The company first pitched $30 billion at $1.4 trillion and trimmed the valuation about a week earlier.
• The Wall Street Journal reported that OpenAI has raised less than half of its $30 billion goal; another summary of its report put commitments at about $11 billion.
• The FT expects the first close to bring in less than $20 billion, after some investors reduced their commitments.
• OpenAI had set Friday, October 30, as the deadline for investor commitments.

Who is involved

According to the reports, investors from the United Arab Emirates, including the state-backed fund MGX, are likely to be the largest backers, with OpenAI getting an option to lease new computing capacity in the region. Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also said to plan investments. Wealthy individuals could buy in later through a retail offering at the same valuation.

Market backdrop

The Next Web linked the pullback to a sell-off in AI stocks, noting the Nasdaq fell 2.9% on Friday and sits 7.8% below its October 6 record close.

OpenAI plans to list in 2027 and reportedly wants to close this round before Anthropic lists, since the two companies draw on similar investors. Anthropic made its IPO filing public on Monday, the report said.

Earlier coverage on this site described the round as up to $30 billion at a $1.25 trillion pre-money valuation, citing CNBC. All figures here come from anonymous sources and could change before any deal is announced.