- OpenAI has lowered the target size of its latest funding round to $20 billion, down from a previously reported $30 billion goal, the Financial Times reported October 31, 2026.
- The Wall Street Journal reported OpenAI has secured $11 billion so far, with some large investors giving a “tepid” response.
- A group of investors from the United Arab Emirates is expected to lead the round, with a retail offering for wealthy individuals potentially closing the remaining gap.
- The pullback follows a broader Wall Street sell-off in AI infrastructure stocks tied to spending-commitment concerns.
What Happened
OpenAI has lowered the target size of its latest funding round to $20 billion, down from a previously reported $30 billion goal at a $1.4 trillion valuation, the Financial Times reported October 31, 2026, per TechCrunch. The first close is expected to land below even the new $20 billion target.
Why It Matters
The retreat follows OpenAI’s reported pursuit of $30 billion at a $1.4 trillion valuation, then at $1.25 trillion, ahead of a planned IPO, and comes as the company has so far only raised $11 billion of that original target. A smaller round would mark a shift in investor appetite after a year of aggressive AI fundraising.
Technical Details
The Wall Street Journal reported OpenAI has secured $11 billion of the new target so far, with some large investors giving a “tepid” response to the round. A group of UAE-based investors is expected to lead the financing, and a subsequent retail offering aimed at wealthy individuals could help close the gap to the $20 billion target.
Who’s Affected
OpenAI, which depends on continued large raises to fund compute and infrastructure commitments; existing and prospective investors weighing valuation risk amid a tech stock sell-off; and Anthropic, whose own planned IPO faces similar market headwinds, according to TechCrunch.
What’s Next
OpenAI has not commented publicly on the reports, and TechCrunch said it has reached out to the company for comment. The final round size and valuation should become clearer once the first close is completed.
