OpenAI has cut its fundraising target by $10 billion as a selloff of AI stock and rival Anthropic PBC’s public listing will complicate efforts to secure investor commitments. | Photo credit: Dado Ruvic
OpenAI has reduced its fundraising target by $10 billion as a selloff of AI shares and rival Anthropic PBC’s public listing will complicate efforts to secure investor commitments, the Financial Times reported.
The maker of ChatGPT is now seeking about $20 billion at a $1.25 trillion valuation, down from $30 billion at a $1.4 trillion valuation last month, the FT said, citing people familiar with the matter.
Some investors have reduced their commitment to OpenAI’s funding round, according to the report. Its scale ambitions reflect investors’ uneasiness over the large sums being poured into artificial intelligence. The Nasdaq 100 fell 3.5 percent on Friday.
Bloomberg News reported last week that OpenAI is seeking to raise capital worth $1.25 trillion during the final stages of negotiations.
A group of investors from the United Arab Emirates, including state-backed MGX, is expected to be the largest participant in the round, the FT said. SoftBank Group Corp and venture capital firms including Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz also plan to participate, according to reports.
OpenAI, Sequoia, Founders Fund and SoftBank declined to comment, the report said. MGX, Coatue and Andreessen Horowitz did not immediately respond to requests for comment, according to the Financial Times.
The fundraising effort faces additional competition from Anthropic, which is preparing to go public next month with a valuation of at least $1.5 trillion, the paper said. OpenAI, which raised $122 billion in March, is looking for new capital to fund its massive computing ambitions as it prepares for its own potential IPO next year, according to the report.
Published on October 31, 2026