OpenAI has reduced its target for its latest funding round by $10 billion amid a selloff in technology stocks driven by concerns over artificial intelligence investments, according to a Financial Times report cited on October 31, 2026.
The ChatGPT maker is now seeking to raise approximately $20 billion, down from its earlier target of $30 billion. Its desired valuation has also been revised to $1.25 trillion from $1.4 trillion, the report said, citing people familiar with the matter.
OpenAI had set a Friday deadline for investors to commit to the funding round. However, the first close is expected to raise less than $20 billion after some investors reduced their allocations, according to the report.
A consortium of investors from the United Arab Emirates, including state-backed technology fund MGX, is expected to be the largest participant in the funding round. As part of the arrangement, OpenAI would receive the option to lease newly developed computing capacity in the region.
Venture capital firms including Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to participate in the round, the Financial Times reported.
The report also said wealthy individuals would have an opportunity to invest through a subsequent retail offering at a valuation of $1.25 trillion.
The revised fundraising target comes as technology companies face growing investor scrutiny over the scale of their AI-related spending and the ability of businesses to generate returns from these investments.
OpenAI, MGX, Coatue, Sequoia Capital and Andreessen Horowitz did not immediately respond to Reuters’ requests for comment outside regular business hours. Founders Fund could not be reached for comment.
The funding adjustment marks a change from OpenAI’s earlier fundraising target as it continues to seek capital to support its AI development and computing requirements.
