OpenAI cuts fundraising target to 20 billion dollars, valuation to 1.25 trillion

OpenAI has lowered its external fundraising target from 30 billion dollars to 20 billion dollars, a reduction of 10 billion dollars, and cut its proposed valuation from 1.4 trillion dollars to 1.25 trillion dollars, according to the Financial Times.

The company had expected first-round investment commitments by October 30 local time, but the amount raised is expected to fall short of 20 billion dollars. OpenAI plans to raise additional funds from high-net-worth individuals to reach its target.

An investment consortium that includes MGX, the UAE state-backed technology fund, is expected to be the largest participant in the round. SoftBank, Sequoia Capital and Founders Fund also plan to take part, and OpenAI is expected to secure an option to lease new computing infrastructure built in the UAE as part of the deal. ZDNet Korea reported on the fundraising figures.

Tech stocks slide on October 30

The fundraising cut landed alongside a broad selloff in technology shares. On October 30, the Nasdaq Composite fell 2.86% to 25,437, the Nasdaq 100 dropped 3.46% and the Philadelphia Semiconductor Index fell 7.20%.

Intel shares plunged 28.58%, while Nvidia and AMD fell 4.22% and 10.88% respectively. Anthropic's IPO is scheduled for next month, with its valuation cited at over 1.5 trillion dollars.

Last month, OpenAI promoted the fundraising as the last chance to secure equity before its IPO next year. Since July 2026, its revenue surged and it raised its proposed valuation from 852 billion dollars to 1.4 trillion dollars, and in March 2026 it raised 122 billion dollars.