OpenAI has cut the target size of its latest funding round to roughly $20 billion from $30 billion and lowered its target valuation to $1.25 trillion, down from $1.4 trillion, the Financial Times reported Friday, October 30.
Investors have questioned the scale of spending OpenAI needs for model development and computing infrastructure, according to the report. Some investors trimmed their commitments amid the AI-related selloff, the blog Wall St Engine noted. The retreat coincided with a near 10% slide in the Nasdaq 100 since early October, including a 4.5% drop on Friday.
Coatue Management and UAE-based investors are co-leading the round, while talks with BlackRock continue. The new target is nearly a third smaller than the $30 billion sum and $1.4 trillion valuation OpenAI was still pursuing as of October 22.
OpenAI's IPO has been pushed to 2027. Chief financial officer Sarah Friar said in August that the company would be public by 2027. The Wall Street Journal reported OpenAI has raised less than half of its $30 billion target, and it remains unclear whether the round has fully closed.
OpenAI was valued at $852 billion in March 2026 after raising $122 billion. Rival Anthropic is preparing its own public offering for November, seeking as much as $100 billion at a $1.5 trillion valuation.
