OpenAI cuts its fundraising target to about $20 billion from $30 billion, and its valuation goal to $1.25 trillion, as AI stocks slump
The reported reduction of $10 billion in the raise and $150 billion in the valuation follows weeks of selling in AI-related shares.
OpenAI has cut the target for its fundraising by $10 billion as the AI trade slumps, according to a report1.
The company is now seeking to raise about $20 billion at a $1.25 trillion valuation, down from an earlier target of $30 billion at a $1.4 trillion valuation3,4.
The company slashed both its target capital raise and its valuation amid the steep AI-related stock selloff of the past few weeks5,6. One account described the change as a $150 billion trim to its valuation target after a drop in the Nasdaq 1003.
Last week the company was reported to be seeking capital at a $1.25 trillion valuation during the final stages of negotiations1.
The revised terms keep the valuation at the level the company was reported to be seeking last week, while the amount to be raised is smaller1,4.
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Why it matters to investors
The terms of the round are a direct read on what private investors will pay for AI growth while public AI shares are falling, since the cut was made amid the selloff5,6.
The cut affects both sides of the deal. The amount sought falls from $30 billion to about $20 billion, and the valuation falls from $1.4 trillion to $1.25 trillion4. The reduction was made in response to the steep selloff in AI-related stocks5.
Accounts differ on how to label the target. Most describe it as a fundraising round4,6, while one frames the reduced figure as an IPO valuation target3.
The revision comes as the largest cloud and AI spenders are guiding capital expenditure higher while questions about that spending have grown sharper2. Rising spending plans and falling AI valuations are now arriving at the same time1,2.
What to watch
The first marker is whether the round closes at the reduced terms of about $20 billion at a $1.25 trillion valuation, or whether the figures move again1,4.
A second is the direction of AI-related shares, since the reported cut was tied to the selloff of the past few weeks5,6.
A third is how the revised terms compare with other AI fundraisings and listings now in the market, which will show whether the reset is specific to OpenAI or wider2,3.
A fourth is whether the $10 billion reduction in the raise is the last revision before the round is completed1,5.
Sources
- OpenAI Funding Target Cut by $10 Billion as AI Slumps, Report Says - Bloomberg, bloomberg.com (2026-10-31)
- OpenAI Funding Target Cut $10B to $20B [2026] - Tech Insider, tech-insider.org (2026-10-31)
- OpenAI IPO Valuation Target Reportedly Trimmed By $150B After Nasdaq 100 Registers ..., finance.yahoo.com (2026-10-31)
- OpenAI Trims Round to $20B at $1.25T Valuation , FT Says | AI Weekly, aiweekly.co (2026-10-31)
- OpenAI reportedly cuts fundraising and valuation targets amid AI jitters - Cryptonews.net, cryptonews.net (2026-10-31)
- OpenAI reportedly cuts fundraising and valuation targets amid AI jitters - CoinDesk, coindesk.com (2026-10-31)
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