OpenAI cut its own raise by $10 billion as investors pulled back

OpenAI has slashed the target for its latest funding round by $10 billion, the Financial Times reported on October 30: it is now seeking about $20 billion at a $1.25 trillion valuation, down from a planned $30 billion at $1.4 trillion, and the first close is expected to raise less than $20 billion after some investors reduced their allocations.

A consortium of UAE investors including state-backed fund MGX is expected to be the largest participant, with an option to lease newly developed computing capacity in the region; Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to take part, and wealthy individuals may join a later retail offering at the $1.25 trillion valuation.

The cut lands in a tech selloff driven by worries over AI spending — the Nasdaq dropped 2.9% on Friday and is down 7.8% from its October 6 high — while OpenAI, which is pursuing a listing in 2027, races to close ahead of Anthropic's expected mid-November debut, with both labs tapping the same investor base.