OpenAI has reportedly reduced its latest fundraising target from $30 billion to $20 billion after securing approximately $11 billion from investors ahead of its planned initial public offering (IPO). The revised target follows reports of weaker demand from some major investors amid concerns about the financial commitments required to expand AI infrastructure.
According to the Financial Times, OpenAI is now seeking $20 billion in new capital, although the initial closing of the funding round is expected to fall below that amount. The company had previously been reported to be pursuing a $30 billion investment round at valuations ranging from $1.25 trillion to $1.4 trillion.
OpenAI Secures $11 Billion as Investor Demand Weakens
The Wall Street Journal subsequently reported that OpenAI had secured approximately $11 billion, less than half its original $30 billion target. The publication also reported that some major institutional investors had shown limited interest in participating at the proposed terms.
The funding round is expected to be led by a group of investors from the United Arab Emirates, according to the Financial Times. OpenAI is also considering a subsequent offering targeted at wealthy individual investors, which could help the company reach its revised $20 billion goal.
OpenAI’s Valuation Falls From $1.4 Trillion to $1.25 Trillion
OpenAI’s reported valuation has also declined during the fundraising process, falling from an initial target of $1.4 trillion in September to $1.25 trillion in October. The company is seeking fresh capital to finance its AI development and computing infrastructure while preparing for a potential public listing in 2027.
Investors reportedly expected to participate include SoftBank, Sequoia Capital, Coatue Management, Founders Fund, and Andreessen Horowitz. The United Arab Emirates investment group also includes state-backed technology fund MGX, with discussions potentially allowing OpenAI to lease computing capacity developed in the region.
AI Infrastructure Spending Raises Investor Concerns
OpenAI’s revised fundraising plans come during a sell-off in technology stocks as investors question the scale of spending on AI infrastructure. The Nasdaq declined 2.9% on October 30 and stood 7.8% below its October 6 record closing high, according to Reuters.
OpenAI previously raised $122 billion in March 2026 and continues to seek funding for its computing requirements. Its fundraising also coincides with rival Anthropic’s preparations for a public listing, with both companies seeking capital from overlapping groups of institutional investors.
OpenAI has not publicly confirmed the revised fundraising target or the reported $11 billion in commitments. A company spokesperson declined to comment on the fundraising reports.
Featured image credits: Wikimedia Commons
For more stories like it, click the +Follow button at the top of this page to follow us.