OpenAI Cuts Fundraising Target by $10 Billion Amid AI Market Selloff
OpenAI, the company behind ChatGPT, has slashed its latest fundraising target by $10 billion, lowering its goal from $30 billion to approximately $20 billion as a broad selloff in AI-related stocks rattles investor confidence. The company’s targeted valuation has also dropped from $1.4 trillion to $1.25 trillion, according to a Financial Times report published October 30, 2026.
The pullback comes at a turbulent moment for the AI sector. Alphabet lost around $700 billion in market value after announcing its 2026 capital expenditure guidance of $195–$205 billion, intensifying concerns about rising AI infrastructure costs.
Some investors have already reduced their commitments to OpenAI’s funding round ahead of the Friday deadline. As a result, the first close is expected to come in below the revised $20 billion target.
A consortium of UAE investors, including state-backed technology fund MGX, is expected to be the round’s largest participant. OpenAI could also gain access to newly developed computing capacity in the region. Venture capital firms expected to participate include Sequoia Capital, Coatue Management, Founders Fund, and Andreessen Horowitz.
The funding round is intended to bridge the company to a planned IPO in 2027. OpenAI is also racing to close the round ahead of rival Anthropic’s anticipated mid-November public listing, as the two companies compete for the same investor base. OpenAI has declined to comment on the changes.
Source: CNBC — OpenAI slashes funding target by $10 billion amid tech rout, FT reports