OpenAI Cuts Funding Target to $20 Billion at $1.25 Trillion Valuation, FT Reports

Oct 31, 2026
OpenAI now seeks $20 billion at a $1.25 trillion valuation, down from $30 billion at $1.4 trillion, the Financial Times reported, and the first close may raise less.

OpenAI has cut the target for its latest funding round by $10 billion and now seeks to raise $20 billion at a $1.25 trillion valuation, the Financial Times reported on Friday, citing people with knowledge of the matter, according to Reuters.

Earlier this month Reuters reported that OpenAI planned to raise $30 billion at a $1.4 trillion valuation and was racing to secure commitments before rival Anthropic's expected public market debut in mid November. The two labs are tapping a similar investor base, Reuters has reported.

OpenAI set a Friday deadline for investors to commit, the FT said. The first close is expected to raise less than $20 billion after some investors reduced their allocations, according to the FT report. OpenAI did not immediately respond to a request for comment from Reuters.

The cut follows a selloff in AI related stocks. The Nasdaq dropped 2.9% on Friday and is down 7.8% from its record close on October 6, Reuters reports. CoinDesk notes that OpenAI had previously put off IPO plans until 2027.

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