OpenAI Cuts Funding Round to $20 Billion From $30 Billion Amid AI Worries
OpenAI trimmed its round target to $20 billion at a $1.25 trillion valuation, the Nasdaq fell 2.9%, and S&P put Meta's rating on negative watch over AI spending.
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what happened
According to Moody's, citing the Financial Times, OpenAI has halved its current funding round: instead of $30 billion, the company now aims to raise $20 billion at a $1.25 trillion valuation, down from $1.4 trillion, Reuters reported. Sources say the startup wants to finish raising before Anthropic's IPO and keep roughly the same investor base. Some participants cut their allocations, and by the Friday deadline OpenAI, according to sources, had raised less than even the reduced target.
US tech shares lost ground at the same time. The Nasdaq fell 2.9% on Friday and sat 7.8% below its record close of October 6. On the same day, S&P Global Ratings put Meta's AA- rating on negative outlook, calling it an 'early step' and pointing to AI-related strain on the balance sheet and rising leverage, Bloomberg reported.
why it matters
The concern reaches across the sector: investors are increasingly doubtful about returns on huge AI investments and are less eager to back large private deals. Competition from Anthropic's IPO and tighter scrutiny of spending could weigh on tech valuations.
market impact
US tech stocks and Meta: doubts over returns on AI spending weigh on sentiment
- Nasdaq pressure down — investors cut tech exposure over doubts about returns on AI spending
- Meta shares pressure down — negative rating outlook driven by rising leverage from AI spending
tags
instruments
sources
- OpenAI's $30 billion funding ambition shrinks to $20 billion: What's worrying investors? — Moody's, 31 October 2026 at 06:23 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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