OpenAI cuts funding target by $10 billion to about $20 billion as AI selloff bites, reports say

OpenAI has cut the target for its latest private funding round by about $10 billion to about $20 billion, the Financial Times reported on 30 October, as relayed by Reuters, with the valuation sought falling from an initial $1.4 trillion to $1.25 trillion. Separately, the Wall Street Journal reported on 31 October that about $11 billion in commitments had been secured, less than half of the original $30 billion goal. OpenAI has not commented on the reports, and the figures remain unconfirmed.

Target and valuation both scaled back

Reuters reported in September that OpenAI was pitching the round at $30 billion with a valuation above $1.4 trillion. On 22 October, Bloomberg reported the valuation under discussion had moved to $1.25 trillion; the Financial Times reported on 30 October that the amount sought had also been cut to about $20 billion. The report said Friday 30 October was the deadline for investor commitments, but the first close is expected to come in below $20 billion because some investors reduced their allocations. This site reported the original $30 billion target on 23 October.

UAE consortium expected to be the largest backer

The Financial Times reported that a consortium of UAE investors including the state-backed AI fund MGX is expected to be the largest participant, with an option for OpenAI to lease newly built computing capacity in the region. Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to take part. Reuters reported on 19 October that SoftBank was in talks to join the round alongside MGX and other existing investors.

Tech selloff and the IPO timetable

The reports link the reduced target to this week’s selloff in technology stocks, driven by investor concern over AI spending: the Nasdaq fell 2.9% on Friday and ended 7.8% below its 6 October record close, Reuters reported. Reuters also reported that OpenAI is seeking a stock market listing in 2027 and wanted to close part of the round ahead of rival Anthropic’s anticipated mid-November listing. The Wall Street Journal said OpenAI plans to pitch family offices and wealthy individuals in the coming weeks to raise more. The final size of the round, whether the UAE computing deal is signed, and whether OpenAI confirms any of the figures are all still unknown.

This article is an original summary based on verified sources, not a verbatim translation.