How much is OpenAI now trying to raise?

OpenAI cut the target on its latest fundraising round to $20 billion from $30 billion, according to sources who spoke to the Financial Times.

What happened to OpenAI's valuation?

The expected valuation dropped to $1.25 trillion from $1.4 trillion as part of the same fundraising cut.

Why is this happening now?

It comes after a brutal selloff in tech stocks over the past week and as quarterly earnings reports from hyperscalers spooked investors.

AI Stocks & MarketsAI Business & IndustryFortune AI11m agoNov 1, 2026, 04:00 JST

OpenAI cuts fundraising target to $20 billion from $30 billion

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3 Key Points

What happened
OpenAI slashed its latest fundraising target to $20 billion from $30 billion, sources told the Financial Times, cutting its expected valuation to $1.25 trillion from $1.4 trillion.
Why it matters
The smaller round suggests investors are pushing back on the massive spending plans that have defined the AI boom, a shift that could make capital harder to raise for other AI labs.

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Context & Analysis

The fundraising cut arrives after a bruising week for tech stocks, when quarterly earnings from hyperscalers spooked investors. Alphabet saw its cash flow sink deeper into negative territory in the third quarter and joined Meta and Amazon in charging ahead with massive spending plans. Against that backdrop, OpenAI sought more capital just as other AI giants tapped financial markets heavily: SpaceX closed $40 billion in debt financing, Meta announced plans to raise $95 billion in equity, and Microsoft raised $25 billion in a bond sale.

OpenAI's move was also upstaged by Anthropic, which filed an S-1 on Monday showing revenue soared and cash flow turned positive in the first half of this year ahead of its IPO next month. Still, some bullish voices are not convinced the AI boom is about to go bust. Market veteran Ed Yardeni said the AI investment boom faces financial, physical, and political constraints, but he views them as healthy for the boom's durability, arguing further AI jitters could set up buying opportunities rather than signal the end.

FAQ

How much is OpenAI now trying to raise?: OpenAI cut the target on its latest fundraising round to $20 billion from $30 billion, according to sources who spoke to the Financial Times.
What happened to OpenAI's valuation?: The expected valuation dropped to $1.25 trillion from $1.4 trillion as part of the same fundraising cut.
Why is this happening now?: It comes after a brutal selloff in tech stocks over the past week and as quarterly earnings reports from hyperscalers spooked investors.

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