OpenAI Cuts Fundraising Goal to $20 Billion Amid Market Jitters

OpenAI, the maker of ChatGPT, has significantly scaled back its latest funding round, cutting its target from $30 billion to approximately $20 billion and lowering its target valuation from $1.4 trillion to $1.25 trillion, according to a Financial Times report published on October 30, 2026. The revision comes as some investors have reduced their commitments amid a sharp tech-sector selloff.

The Nasdaq 100 has fallen roughly 10% in the three weeks since hitting a record high on October 6, including a 4.5% single-day drop on October 31. That has made conditions considerably tougher for high-valuation AI companies seeking private capital. Even at the reduced figures, a successful $20 billion raise at a $1.25 trillion valuation would make OpenAI the most valuable private company in history, surpassing its own previous record from a $122 billion round in March 2026.

The cut comes at an awkward moment: rival Anthropic filed publicly for its Nasdaq IPO on October 26, with investors reportedly eyeing a fair value of $1.4 trillion to $1.5 trillion for the competing AI lab. OpenAI, led by CEO Sam Altman, has delayed its own IPO plans until 2027. The initial close of the current round is expected to fall short of the $20 billion target, with a subsequent offering to individual investors potentially filling the gap.

Source: AI Weekly – OpenAI Trims Round to $20B at $1.25T Valuation, FT Says