Catenaa, Saturday, October 31, 2026- OpenAI is lowering its funding target to $20 billion from the previously announced $30 billion, the Financial Times reported.
OpenAI has reportedly reduced its fundraising ambitions by $10 billion, seeking approximately $20 billion at a proposed valuation of $1.25 trillion. The revised targets represent a reduction from its earlier plans to secure $30 billion at a $1.4 trillion valuation, according to the Financial Times.
FT said the round will be led by a group of investors from the United Arab Emirates, with a first close that’s expected to be even lower.
The Wall Street Journal separately reported that OpenAI has secured $11 billion so far and that its fundraising efforts have met with a lukewarm response from some large investors.
“If we weren’t continuing to grow our training costs by so much, we would be profitable way, way earlier. But the bet we’re making is to invest very aggressively in training these big models,” CEO Sam Altman said on the “Big Technology Podcast” last year.
According to internal estimates seen by The Wall Street Journal, OpenAI does not think it will be profitable soon, probably not until 2030, as questions surrounding OpenAI’s financial sustainability have intensified as investment in advanced AI development continues to grow.
Reuters reported that Anthropic, OpenAI’s biggest rival, is pushing toward a $1.5 trillion IPO valuation, a 25% decrease from the once-assumed $2 trillion target for its November debut.
But the biggest red flag may be from Morgan Stanley, which said demand from its high-net-worth clients to throw more money at OpenAI is weaker than in the past.
“There has been zero clamoring,” one person told FT. “All the prior times [OpenAI] have been on there’s been a frenzy. This time is a bit of a thud.”
OpenAI’s reduced valuation expectations have also raised questions about the potential implications for Microsoft, one of its largest financial and commercial partners. Investors are increasingly assessing how changes in AI-company valuations could affect technology stocks with substantial exposure to the sector.
