OpenAI Cuts Funding Round Target to Up to $20 Billion From $30 Billion Amid Tech Selloff

OpenAI is now seeking to raise up to $20 billion in its latest funding round, down from an earlier target of up to $30 billion, the Financial Times reported, and CNBC confirmed the $20 billion figure with a person familiar with the matter. The round values the company at $1.25 trillion; CNBC, citing the FT, described that as a post-money valuation. OpenAI had already lowered its valuation target to $1.25 trillion from $1.4 trillion, as reported around October 22, so this week's change is a smaller round rather than a new cut to the price.

OpenAI set a Friday, October 30 deadline for investors to commit, and the round had not closed as of CNBC's report. FT-based accounts say the first close is expected to bring in less than $20 billion after some investors trimmed their allocations. Investors from the United Arab Emirates are leading the round alongside Coatue, according to CNBC. OpenAI did not respond to CNBC's request for comment.

The timing is difficult. The cut comes during a broad selloff in technology stocks and heightened investor scrutiny of AI spending, and as Anthropic prepares its public listing, which Bloomberg, citing the FT, said is complicating OpenAI's effort to lock in commitments. Earlier FT reporting said some investors wanted to see how Anthropic prices its IPO before committing.

What to watch: the size of the first close, whether OpenAI holds the $1.25 trillion valuation, and how Anthropic's IPO pricing resets the benchmark for private AI valuations. For public AI names such as MSFT and NVDA, a smaller OpenAI raise is a data point on how much capital is still available for AI buildouts.