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OpenAI funding target lowered to about $20 billion, valuation $1.25 trillion

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AI overview

In October 2026, OpenAI advanced a pre-IPO bridge financing round led by UAE investors and Coatue, initially targeting up to $30 billion at a pre-money valuation of $1.4 trillion. According to internal documents obtained by the Financial Times, the valuation target was subsequently lowered to $1.25 trillion, and CNBC also reported this adjustment. A report on October 31 said the financing target was lowered from $30 billion by about $10 billion to about $20 billion, the deadline for investor commitments was set for Friday, and the first closing was expected to raise less than $20 billion because some investors reduced their allocations. Other reports said only about $11 billion had been raised so far, that the company planned to raise up to another $20 billion from family offices and high-net-worth individuals, and that it reportedly planned to launch its IPO early next year. UAE's MGX and others were expected to be the largest participants, and the deal included an option to lease newly built local compute.

Generated by AI from reports · Updated 2 days ago

Latest developments

3 developments
  1. · 1 report
    OpenAI funding falls short of target, raising only $11 billion
    The Decoder: OpenAI raised only $11 billion in funding, far below its $30 billion target
  2. · 6 reports
    OpenAI lowers its fundraising target by 10 billion US dollars
    Financial Times · AI: As anxiety in the tech market intensifies, OpenAI lowers its fundraising target by 10 billion US dollars
  3. · 5 reports
    OpenAI close to completing up to $30 billion funding
    CNBC · Technology: OpenAI close to finalizing up to $30 billion funding at $1.25 trillion pre-money valuation, led by Emirati investors

Progress timeline

Nov 1
  1. WeChat · QbitAI
    OpenAI's $30 billion funding round has so far secured only $11 billion; Anthropic reportedly may be rated "high-grade junk"; Nasdaq fell 3.46%

    OpenAI's $30 billion funding round has so far secured only $11 billion, and the target has been lowered by one third. Blackstone told investors that Anthropic is likely to fail to obtain an investment-grade rating after going public, and may be rated "high-grade junk." Affected by this, the Nasdaq closed down 3.46%, the Nasdaq 100 fell 3.5%, and chip stocks such as Nvidia and AMD as well as tech stocks such as Microsoft, Meta and Google declined.

Oct 31
  1. The DecoderSelected
    OpenAI raised only $11 billion in funding, far below its $30 billion target

    OpenAI's latest funding round has so far raised only about $11 billion, less than half of its $30 billion target, according to The Wall Street Journal. Its valuation is set at $1.25 trillion, below the $1.4 trillion it had originally aimed for. The report said the funding shortfall stems from waning interest among large investors, against the backdrop of a tech stock selloff triggered by weak quarterly results from Google, Amazon and Intel. OpenAI now plans to raise up to $20 billion more from family offices and high-net-worth individuals, and is reportedly planning to launch an IPO early next year. Competitor Anthropic has recently grown revenue faster and could go public as early as November.

  2. ChosunBiz
    OpenAI lowers fundraising target amid AI selloff and IPO pressure

    According to the Financial Times, citing people familiar with the matter, OpenAI has lowered its ongoing fundraising target by 10 billion US dollars, from 30 billion US dollars set last month to 20 billion US dollars, and adjusted its valuation target from about 1.4 trillion US dollars to about 1.25 trillion US dollars. The report said that concerns over excessive AI investment by large tech companies, sharp declines in related stocks, and the approaching IPO of competitor Anthropic have caused this funding round to encounter resistance. Participants in this round are expected to include UAE investment institution MGX, Sequoia Capital, Andreessen Horowitz (a16z), Founders Fund and Masayoshi Son-led SoftBank. Some people familiar with the matter said it is not ruled out that the total amount raised in the first round will be below target; OpenAI originally planned for investors to make first-round subscription commitments before that day, but some investors are reducing their commitment amounts. The report also mentioned that OpenAI completed 122 billion US dollars in financing in March this year, and its compute spending plans are several times that.

  3. Financial Times · AI
    As anxiety in the tech market intensifies, OpenAI lowers its fundraising target by 10 billion US dollars

    OpenAI has lowered the target for its latest funding round from 30 billion US dollars to about 20 billion US dollars, and its valuation target from 1.4 trillion US dollars to 1.25 trillion US dollars. According to people familiar with the matter, the company has set Friday as the deadline for investors' committed contributions; because some investors reduced their allocation amounts, this "first close" is expected to raise less than 20 billion US dollars. A consortium of UAE investment groups (including the state-backed technology fund MGX) is expected to be the largest participant; as part of the deal, OpenAI will have the option to rent newly built computing capacity in the region. Founders Fund, Coatue, Sequoia Capital, Andreessen Horowitz and SoftBank also plan to participate. A retail offering will follow, allowing wealthy individuals to buy in at a 1.25 trillion US dollar valuation, potentially expanding the round to around 20 billion US dollars. OpenAI raised 122 billion US dollars in March this year and plans to spend several times that amount on computing capacity.

  4. Moneycontrol
    Report says AI market is in a slump, OpenAI cuts fundraising target by $10 billion

    According to the Financial Times, citing people familiar with the matter, OpenAI has lowered its fundraising target for this round from $30 billion to about $20 billion, and its valuation from $1.4 trillion to $1.25 trillion. Some investors have reduced their commitments to OpenAI's current fundraising round, which the report says reflects growing investor unease about the huge sums flowing into AI, and the Nasdaq 100 index fell 3.5% on Friday. The report also says investors including the UAE state-backed MGX are expected to be the largest participants in this round, with SoftBank, Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also planning to take part. The fundraising also faces competition from Anthropic, which is preparing to list next month at a valuation of at least $1.5 trillion. OpenAI raised $122 billion in March this year, and is raising new funds for its compute spending and preparing for a possible IPO next year.

  5. ThePrint
    OpenAI lowers fundraising target by $10 billion amid AI market sell-off

    According to a Financial Times report, amid an AI stock sell-off and competition from Anthropic's upcoming listing, OpenAI has lowered its fundraising target for this round by $10 billion and is now seeking to raise about $20 billion at a $1.25 trillion valuation, down from last month's $30 billion target and $1.4 trillion valuation, with some investors having reduced their committed amounts. The Nasdaq 100 index fell 3.5% on Friday. The report says an investor group including UAE state-backed MGX is expected to be the largest participant in the round, with SoftBank, Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also planning to participate. Anthropic is preparing to list next month at a valuation of at least $1.5 trillion; OpenAI raised $122 billion in March, and this fundraising is to support its large-scale compute plans and a possible IPO next year.

Oct 23
  1. The Decoder
    OpenAI lowers valuation target, to raise up to $30 billion

    OpenAI is pursuing a funding round of up to $30 billion but has lowered its valuation target to $1.25 trillion. According to internal documents obtained by the Financial Times, the company initially pitched investors a valuation of $1.4 trillion, and CNBC also reported the reduction; the FT says demand for this round is weaker than in previous rounds, with some investors experiencing "indigestion" after large earlier commitments. The round is led by Emirati investors and the investment firm Coatue, and the funding is positioned as bridge financing ahead of a potential IPO; OpenAI is also negotiating a commercial agreement to obtain additional compute capacity through the UAE. OpenAI confidentially submitted an IPO prospectus to the SEC in June, CFO Sarah Friar told employees in August that the company would become publicly listed by 2027, and CEO Sam Altman said in September that current market timing for a listing is unfavorable. Competitor Anthropic is also preparing an IPO, targeting a valuation of $1.5 trillion to $2 trillion.

  2. The Decoder
    OpenAI nears completion of a new funding round with UAE investors

    OpenAI is nearing completion of a new funding round of up to $30 billion, but its valuation target has been lowered. According to internal documents obtained by the Financial Times, the company initially quoted investors a valuation of $1.4 trillion, which was subsequently reduced to $1.25 trillion; CNBC also reported this adjustment. The FT said demand for this round was weaker than in previous rounds, with some investors experiencing "indigestion" after large earlier commitments; UAE investors and investment firm Coatue led the round, which is positioned as bridge financing ahead of a potential IPO. CNBC said OpenAI is also negotiating a commercial agreement to obtain additional compute through the UAE. OpenAI confidentially submitted an IPO prospectus to the SEC in June; CFO Sarah Friar told employees in August that the company would become a public company by 2027, while CEO Sam Altman said in September that current market conditions were unfavorable for going public.

  3. TechCrunch AI
    OpenAI reportedly in talks for a new pre-IPO funding round of 30 billion USD at a valuation of 1.25 trillion USD

    According to people familiar with the matter who spoke to CNBC, OpenAI is negotiating a new private funding round of up to 30 billion USD, at a pre-money valuation of 1.25 trillion USD, led by Coatue and UAE investors, rather than directly proceeding with an IPO; OpenAI declined to comment. A month earlier, Bloomberg had reported a similar funding round, with a valuation of 1.4 trillion USD at the time; both outlets said the terms are still under negotiation and may change in the end. CNBC said the UAE funding may come with an agreement for OpenAI to obtain more compute capacity from the UAE. If this round's valuation exceeds 1 trillion USD, OpenAI would become the highest-valued private company in history and further raise the pricing threshold for its subsequent IPO. OpenAI filed confidentially for an IPO in June; a funding round in March had a post-money valuation of 852 billion USD.

  4. CNBC · TechnologySelected
    OpenAI close to finalizing up to $30 billion funding at $1.25 trillion pre-money valuation, led by Emirati investors

    OpenAI is close to finalizing a funding round of up to $30 billion at a pre-money valuation of $1.25 trillion, led by Emirati investors and Coatue according to people familiar with the matter, with the financing positioned as an opportunistic bridge ahead of a potential IPO. OpenAI told investors on Thursday it aims to complete signing by the end of next week, and the final size remains undetermined; the talks began in September when investors approached the company with a proposal. According to one person familiar with the matter, OpenAI is also negotiating a commercial agreement with the UAE for more compute, and in February told investors it aims to spend about $600 billion in total compute spending by 2030. The company confidentially filed a prospectus with the U.S. Securities and Exchange Commission (SEC) in June, CFO Sarah Friar told employees in August that the company would become a public company in 2027, and CEO Sam Altman subsequently said in September that going public now is not a wise timing.

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