OpenAI Slashes Funding Round Target by $10bn as AI Selloff Triggers Investor Pullback
8 Sources
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OpenAI slashes funding target by $10bn as tech anxieties mount
ChatGPT maker is now seeking about $20bn at a $1.25tn valuation as it tempers its ambitions OpenAI has slashed the target for its latest funding round by $10bn as it scrambles to close a deal which has been overshadowed by an AI sell-off in the public markets and the imminent public listing of its
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OpenAI slashes funding target by $10 billion amid tech rout, FT reports
OpenAI CEO Sam Altman speaking at Oracle AI World in Las Vegas, Nevada on Oct. 27th, 2026. CNBC OpenAI has slashed the target for its latest funding round by $10 billion amid a selloff in tech stocks driven by AI worries, the Financial Times reported on Friday, citing people with knowledge of the
[3]
OpenAI funding round target cut to $20bn as investors pull back
Some investors cut their commitments as AI stocks fell. So far the OpenAI funding round has raised less than half of its $30bn goal, the WSJ reports. OpenAI has cut the target for its latest funding round by $10bn, to about $20bn. The Financial Times reported the cut on Friday 30 October, citing
[4]
OpenAI Raises Just $11 Billion as AI Bubble Fears Rise, Valuation Hits $1.25 Trillion - Meta Platforms (N
OpenAI, the artificial intelligence (AI) pioneer, is facing headwinds as its revenue growth slows, its cash burn climbs, and its fundraising hits a roadblock. These pressures come amid persistent fears that the AI bubble is about to burst. OpenAI Raised Just $11 Billion at a $1.25 Trillion
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Even OpenAI Is Feeling the AI Selloff? ChatGPT Maker Reportedly Cuts Funding Target by $10 Billion as Inv
Even as it races to expand its artificial intelligence (AI) infrastructure and fend off rivals, OpenAI is reportedly scaling back its fundraising ambitions as a broader tech stock rout fuels investor concerns over AI spending. OpenAI Lowers Funding Target and Valuation The ChatGPT maker is now
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OpenAI raises just $11bn of $30bn target as AI investor appetite cools - WSJ By Investing.com
Investing.com -- OpenAI has secured approximately $11 billion in commitments for its latest funding round, falling well short of its initial $30 billion target as investor concerns over artificial intelligence spending intensify, the Wall Street Journal reported Friday. The financing values the
[7]
OpenAI reportedly cuts funding target to $20 billion: IPO valuation goal lowered
The Wall Street Journal reported today that OpenAI has revised its fundraising plans. The company's target has reportedly been trimmed from $30 billion to about $20 billion, and its valuation goal ahead of a planned IPO has been lowered from roughly $1.4 trillion to $1.25 trillion. The paper also
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OpenAI lowers fundraising target to $20 billion: implied valuation cut to $1.25 trillion
Investors pulled back amid tech selloff before Anthropic's IPO OpenAI, the company behind ChatGPT, has reportedly cut the target for its latest private funding round to about $20 billion, down from $30 billion. The first close now looks likely to come in under $20 billion, and the implied
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OpenAI reduced its funding round target from $30bn to $20bn amid a brutal tech stock selloff and mounting AI bubble fears. The ChatGPT maker lowered its valuation to $1.25tn as investors pulled back commitments, raising concerns about AI spending and market anxieties ahead of rival Anthropic's IPO.
OpenAI Funding Target Drops from $30bn to $20bn
OpenAI has slashed its funding round target by $10bn, now seeking approximately $20bn at a $1.25tn valuation, down from its original goal of $30bn at $1.4tn
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. The ChatGPT maker set a Friday deadline for investors to commit, but the first close is expected to bring in less than $20bn after some investors lowered their allocations1
. According to reports, the company has raised just $11.5bn so far, falling well short of its initial ambitions4
. The dramatic reduction signals a significant shift in investor sentiment toward AI companies.
Source: Benzinga
Tech Stock Selloff Drives Investor Pullback
The funding cut comes amid a brutal AI selloff that has rattled tech markets. The tech-heavy Nasdaq 100 fell 3.5% on Friday, with the index now sitting 7.8% below its record close on October 6
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. Growing market anxieties about the pace and extent of AI spending have triggered an investor pullback across the sector1
. One of OpenAI's backers acknowledged they had initiated the fundraising process amid enthusiasm for the AI trade but were caught out by a sharp reversal in the market1
. This tech stock selloff has forced OpenAI to temper its ambitions despite pointing to rapid revenue increases since July to justify its valuation1
.AI Spending Concerns and Bubble Fears Mount
AI bubble fears are intensifying as investors question whether massive infrastructure investments will deliver returns. OpenAI's cash burn is estimated to exceed $280bn through 2030, while its annualized revenue sits below $50bn, short of the $70bn analysts were expecting
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. AI spending concerns have been amplified by prominent figures including Citadel's Ken Griffin and Bridgewater Associates' Ray Dalio, who have warned about potential overvaluation4
. ChatGPT's market share has also fallen below 50% for the first time, with competition intensifying from Anthropic's Claude, Google's Gemini, and Meta's offerings4
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UAE Investors Lead Funding Round Participation
A consortium of UAE investors, including state-backed technology fund MGX, is expected to be the largest participant in the funding round
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. As part of the deal, OpenAI will gain an option to lease newly developed computing power in the region1
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. Venture capital firms including Founders Fund, Coatue, Sequoia Capital, and Andreessen Horowitz, as well as Masayoshi Son's SoftBank, also plan to participate1
. A subsequent retail offering will give wealthy individuals the option to buy into OpenAI at the $1.25tn valuation, potentially expanding the round closer to $20bn1
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.Competition from Anthropic Adds Pressure
OpenAI faces intensifying competition from Anthropic, which is set to go public next month at a valuation of $1.5tn or more, absorbing both investor capital and focus
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. OpenAI is pursuing an IPO in 2027 and has been keen to close the funding round partly to get ahead of Anthropic's imminent listing, as the two companies tap a similar investor base2
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. Anthropic's revenue soared to over $16.8bn in the first half of the year from $1.6bn in the same period last year, demonstrating strong revenue growth that contrasts with OpenAI's challenges4
. OpenAI raised $122bn in March this year but has plans to spend multiples of that on computing power to train and run its models1
. The company has also delayed its IPO from this year to 2027, with management citing AI safety concerns, though underlying business fundamentals appear to be a factor4
.References
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