OpenAI cuts fundraising goal to $20 bn in latest round
OpenAI is now seeking up to $20 billion in a new funding round, down from a previous $30 billion target, as investors weigh AI spending returns, CNBC reports.
At a glance
- OpenAI is now aiming to raise up to $20 billion in a new funding round, down from an earlier $30 billion target.
- The round is still ongoing and could change, with investors from the United Arab Emirates leading alongside Coatue.
- According to the Financial Times, OpenAI seeks a post‑money valuation of $1.25 trillion and set a Friday deadline for commitments.
OpenAI is now seeking up to $20 billion in a new funding round, down from a previous $30 billion target, as of Oct. 31, 2026, with investors from the United Arab Emirates leading the effort, according to CNBC. The funding round is still in progress and the figures could change, a person familiar with the deal said, requesting anonymity.
Funding target cut The reduction reflects a shift in investor sentiment after a week of concerns about the returns from big‑tech AI spending. The Financial Times first reported that OpenAI had trimmed its target by $10 billion and now aims for a post‑money valuation of $1.25 trillion. The ChatGPT developer set a Friday deadline for investors to commit, and some have opted to lower their allocations.
Investor response and valuation Investors from the United Arab Emirates are leading the round alongside Coatue, as CNBC previously reported. OpenAI did not immediately comment on the new figures. The company’s earlier $30 billion goal had signaled strong confidence in AI demand, but the revised target suggests a more cautious approach amid market volatility.
AI market backdrop AI‑linked stocks fell sharply on Friday, with Intel down 25% after weak revenue guidance, Micron off 5.5%, and Nvidia dropping 4%. Microsoft, Alphabet’s Google, and Amazon have all increased spending on AI infrastructure, yet their recent capital‑expenditure forecasts fell short of analyst expectations. Alphabet suffered its worst trading day ever on Thursday after search revenue missed expectations, partly because of lower monetization in its AI Mode, according to chief business officer Philipp Schindler.
The funding news comes as tech investors debate whether the surge in AI spending will deliver adequate returns, especially as data‑center and GPU costs rise.
Source: CNBC Top News
Questions and answers
- Why did OpenAI reduce its fundraising target?
- The company lowered its goal to $20 billion from $30 billion as investors reassessed AI spending returns.
- Who is leading the new funding round?
- Investors from the United Arab Emirates are leading the round, joined by Coatue, CNBC reports.
- What valuation is OpenAI seeking?
- According to the Financial Times, OpenAI aims for a post‑money valuation of $1.25 trillion.
Original reporting: CNBC Top News (cnbc.com)
sam_altmanopenaicoatueunited_arab_emiratesai_stocks
