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Sat, 31 Oct 2026
DevelopingTech

OpenAI slashes funding target by $10bn to about $20bn, FT reports

The FT reported that the round's first close is expected to bring in under $20bn after some investors cut their allocations. OpenAI had not responded to Reuters by its 01:17 CET report on 31 October.

By AI markets desk·Sources: 3 sources·Published ·AI-generated·2 min read
Key factsas of FT report, 31 October 2026
  • Amount sought now, per the FTAbout $20bn Down $10bn
  • Earlier target, per Bloomberg on the FT$30bn Sought last month
  • Valuation sought, per the FT$1.25tn Down from $1.4tn
  • First close, per the FT via ReutersLess than $20bn expected
  • Largest expected backer, per the FTUAE consortium including MGX

OpenAI has cut its latest funding round's target by $10bn and is now looking to raise about $20bn at a $1.25tn valuation, the Financial Times reported, citing people with knowledge of the matter. Bloomberg's account of the FT report says the ChatGPT maker had been seeking $30bn at a $1.4tn valuation last month.

OpenAI had set Friday, 30 October, as the deadline for investors to commit, but the first close of the round is expected to bring in less than $20bn after some investors cut their allocations, according to the FT as reported by Reuters. The largest participant is expected to be a consortium of investors from the UAE that includes MGX, a state-backed technology fund, and the deal would give OpenAI an option to lease computing capacity newly built in the region, the FT reported.

Coatue, Founders Fund, Andreessen Horowitz and Sequoia Capital are among the venture firms also expected to invest, according to the FT. Wealthy individuals would later be able to buy in through a retail offering, also at a $1.25tn valuation, the newspaper reported. In its report published at 01:17 CET on 31 October, Reuters said its requests for comment to OpenAI, MGX, Coatue, Andreessen Horowitz and Sequoia Capital, sent outside business hours, got no immediate response, and that it could not reach Founders Fund.

What the reports connect it to

Reuters' account of the FT report places the cut during a sell-off in tech stocks driven by worries about AI. Bloomberg's account says the FT reported that the AI stock sell-off and rival Anthropic's impending listing are making it harder for OpenAI to secure commitments. Reuters, in its own reporting, said the Nasdaq fell 2.9% on Friday, 30 October 2026, at the close (16:00 ET, 21:00 CET), leaving it 7.8% below its record close of 6 October.

OpenAI is pursuing a stock market listing in 2027, according to Reuters.