OpenAI lowers its latest funding target from $30 billion to about $20 billion, and cuts its valuation from $1.4 trillion to $1.25 trillion

According to the Financial Times, OpenAI has lowered the target for its latest funding round from about $30 billion, corresponding to a $1.4 trillion valuation, to about $20 billion, corresponding to a $1.25 trillion valuation. The company had previously pitched investors at the higher price tag, but some prospective investors proactively reduced their subscription amounts because of weaker demand, leaving the first close expected to fall short of the new target. The adjustment comes against the backdrop of a sharp pullback in U.S. tech stocks over concerns about the sustainability of AI spending, as well as rival Anthropic approaching an IPO.

The report said that an investor consortium from the United Arab Emirates, including the state-backed technology fund MGX, is expected to be the largest participant in the round. As part of the deal, OpenAI will gain the option to lease newly developed computing capacity in the region. Other expected participants include Coatue, Founders Fund, Sequoia Capital and Andreessen Horowitz. OpenAI previously completed a record $122 billion financing round in March 2026 at an $852 billion valuation, and the lowered $1.25 trillion valuation for this round is still about 47% higher than that level. The company has positioned this round as a pre-IPO bridge financing round. The IPO window was previously mentioned as the first half of 2027, but has not been finalized.

Original sources:

1. Title: OpenAI slashes funding target by $10bn as tech anxieties mount Publisher: Financial Times (George Hammond, Amelia Pollard) Publication date: 2026-10-30 URL: https://www.ft.com/content/7a3ad950-1b3b-4d9e-8c15-65a61ae6180f Source type: media report Verification status: This reading accessed the visible summary on the page and quoted material in cross-reports (the original is behind a paywall), verification date 2026-10-30; details were cross-verified through reliable paraphrases in Reuters, Bloomberg and others Supporting content: OpenAI lowered its funding target from $30 billion / a $1.4 trillion valuation to about $20 billion / a $1.25 trillion valuation; some investors reduced subscriptions, causing the first close to be expected below target; UAE investor role and computing capacity option

2. Title: OpenAI slashes funding target by $10 billion amid tech rout, FT reports Publisher: Reuters Publication date: 2026-10-30 URL: https://www.reuters.com/business/openai-cuts-funding-target-by-10-billion-ft-reports-2026-10-31/ Source type: media report Verification status: The relevant full text was actually read in this report, verification date 2026-10-30 Supporting content: Confirmed FT's core figures (the target was cut by $10 billion to about $20 billion, and the valuation to $1.25 trillion), investor reductions, and the expectation for the first close

3. Title: OpenAI Raises Less Than Half of $30 Billion Target in Latest Round Publisher: The Wall Street Journal Publication date: 2026-10-30 URL: https://www.wsj.com/tech/ai/openai-raises-less-than-half-of-30-billion-target-in-latest-round-91aecdc5 Source type: media report Verification status: The report summary was read, verification date 2026-10-30 Supporting content: Added that about $11 billion had actually been committed, less than half of the original $30 billion target, and that the valuation was set at $1.25 trillion