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OpenAI lowers funding target to $20 billion and valuation to $1.25 trillion

OpenAI has cut its latest fundraising goal to about $20 billion, down from $30 billion, and its IPO valuation target to $1.25 trillion, with $11 billion already secured.

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OpenAI has reduced its latest funding round target to about $20 billion, down from an earlier $30 billion goal (TechCrunch, “OpenAI reportedly lowers funding target for new round”, 31 October 2026).

How much funding is OpenAI targeting in its latest round?

OpenAI is now seeking roughly $20 billion in total for the round (TechCrunch, “OpenAI reportedly lowers funding target for new round”, 31 October 2026). The first close is expected to fall short of that amount, with investors scaling back allocations (Reuters, “OpenAI slashes funding target by $10 billion amid tech rout, FT reports”, 31 October 2026).

What valuation is OpenAI aiming for in its upcoming IPO?

The company’s desired valuation has dropped to about $1.25 trillion, down from a prior $1.4 trillion figure (Reuters, “OpenAI slashes funding target by $10 billion amid tech rout, FT reports”, 31 October 2026). The lower valuation aligns with the reduced funding target and reflects broader market anxiety over AI‑related spending (FT, “OpenAI slashes funding target by $10bn as tech anxieties mount”, 31 October 2026).

Which investors are leading OpenAI’s latest funding round?

A consortium of investors from the United Arab Emirates, including the state‑backed technology fund MGX, is expected to be the largest participant (Reuters, “OpenAI slashes funding target by $10 billion amid tech rout, FT reports”, 31 October 2026). Venture‑capital firms such as Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also slated to take part (Reuters, “OpenAI slashes funding target by $10 billion amid tech rout, FT reports”, 31 October 2026). A subsequent retail offering for wealthy individuals may bring the total funding to the $20 billion target (TechCrunch, “OpenAI reportedly lowers funding target for new round”, 31 October 2026).

How much has OpenAI raised so far in the round?

OpenAI has secured about $11 billion to date (TechCrunch, “OpenAI reportedly lowers funding target for new round”, 31 October 2026). The fundraising effort has encountered a “tepid” response from some large investors, contributing to the lowered target (TechCrunch, “OpenAI reportedly lowers funding target for new round”, 31 October 2026).

Funding and Valuation Comparison

MetricEarlier TargetRevised Target
Funding amount$30 billion$20 billion
Valuation goal$1.4 trillion$1.25 trillion

Sources

openai fundraising venturecapital valuation ipo uae-investors