OpenAI has cut the target for its latest funding round to about $20 billion from $30 billion, after some large investors reduced their commitments. The revised target values the ChatGPT maker at $1.25 trillion, down from $1.4 trillion.
The company set an October 30 deadline for investors to commit to the round. The first close is now expected to raise less than $20 billion, with a later retail offering to wealthy individuals intended to close the gap.
Who is backing the round
A group of investors from the United Arab Emirates is expected to lead the round. The group includes MGX, the state backed technology fund, and OpenAI would gain the option to lease newly developed computing capacity in the region as part of the deal.
Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to take part. About $11 billion has been secured so far, after some large investors gave the fundraising a cooler response than expected.
Why the timing turned difficult
The cut comes during a sharp selloff in technology stocks, driven by worries about heavy spending on artificial intelligence. The Nasdaq index fell 2.9 percent on Friday and sits 7.8 percent below its all-time closing high from October 6.
OpenAI is pursuing a listing in 2027 and wants the round closed before rival Anthropic lists its shares. The two companies are courting a similar investor base, which makes the timing of each fundraising move matter.
What happens next
A subsequent offering aimed at wealthy individuals could still bring the total to the $20 billion target. OpenAI did not respond to requests for comment on the revised target or the amount secured so far.
The test now is whether the first close lands near the new target or falls well short of it. Either outcome will be read as a signal for how much investors will still pay for the biggest names in artificial intelligence.
