OpenAI reportedly trims its mega-round to $20 billion as the AI selloff bites

OpenAI has cut the target for its latest funding round by about $10 billion, to roughly $20 billion, and lowered its desired valuation to $1.25 trillion from $1.4 trillion, the Financial Times reported on Friday, Oct. 30, 2026, citing people with knowledge of the matter. OpenAI had not commented.

"Only" $20 billion at "only" $1.25 trillion is still one of the largest private raises ever, so nobody should pass the hat for OpenAI. But direction matters more than size here. For two years the AI pitch has been that the number only goes up, and this is the week the number went down: Intel cratered, the Nasdaq slid, and some of OpenAI's own investors reportedly shrank their checks. Note who didn't flinch. The biggest piece is a Gulf state fund that also gets to sell OpenAI compute, which is less a venture bet than an industrial policy. And the timing is no accident. Anthropic is about to go public chasing the same pool of money, and OpenAI clearly wants its round closed before investors get a public-market price to compare it to.

The Financial Times reported on Friday, Oct. 30, 2026, citing people with knowledge of the matter, that OpenAI is now seeking about $20 billion in its latest funding round, down from a $30 billion target. Its desired valuation has dropped to $1.25 trillion from $1.4 trillion. A valuation, here, is the price the round puts on the whole company. Those figures are the Financial Times's. OpenAI had not commented.

OpenAI set a Friday, Oct. 30, deadline for investors to commit. The first close, the first batch of money actually collected, is expected to raise less than $20 billion after some investors reduced their allocations. An allocation is the amount an investor had planned to put in. Those lines are the Financial Times's.

A consortium of investors from the United Arab Emirates, including the state-backed tech fund MGX, is expected to be the largest participant. As part of the deal, OpenAI would gain an option to lease newly developed computing capacity in the UAE. Computing capacity, here, means time on the machines that run AI models. Those lines are the Financial Times's.

Founders Fund, Coatue, Sequoia Capital, and Andreessen Horowitz are also expected to participate. Those names are the Financial Times's.

Wealthy individuals will be able to invest in a later retail offering at the $1.25 trillion valuation. A retail offering, here, is a later chance for individuals to buy in, separate from the main round. That line is the Financial Times's.

OpenAI, MGX, Coatue, Sequoia, and Andreessen Horowitz did not immediately respond to Reuters. Founders Fund could not be reached. Those lines are Reuters's.

The backdrop, as Reuters reports it, is a selloff in U.S. tech stocks over AI spending. The Nasdaq fell 2.9% on Friday and is down 7.8% from its record close on Oct. 6. Reuters also reports that OpenAI is pursuing a listing in 2027 and has been keen to close this round partly to get ahead of Anthropic's imminent listing, since the two draw on a similar pool of investors. A listing is a first sale of shares to the public. Those lines are Reuters's.

The picture is OpenAI chief executive Sam Altman in a gray sweater, sitting in a yellow velvet chair at an outdoor table, looking off to the side. The credit is Village Global, CC BY 2.0, via Wikimedia Commons.

In plain terms, the Financial Times says OpenAI cut the target for this round by about $10 billion, to roughly $20 billion, and lowered the price it wants on the company from $1.4 trillion to $1.25 trillion. A UAE group that includes MGX is expected to write the biggest check, and OpenAI would get an option to lease new computing capacity there. Some investors have already shrunk their allocations, so the first close is expected to come in under $20 billion. OpenAI has not commented.