OpenAI trims funding target and valuation as tech sell-off deepens
OpenAI reportedly seeks about $20 billion at a $1.25 trillion valuation, below its earlier $30 billion target, as the Nasdaq 100 posts its worst month since March 2025.
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what happened
According to the Financial Times, as reported by Stocktwits, OpenAI has cut the size of its latest funding round from $30 billion to about $20 billion, and its valuation from $1.4 trillion to $1.25 trillion. The company had previously justified its high valuation by pointing to a sharp rise in revenue since July. Investors were given until Friday to commit, but some reduced their allocations, and the initial close was expected to bring in less than $20 billion.
The shift reflects a change in market mood. Technology stocks sold off sharply, and investors have started looking more closely at spending on AI. The Nasdaq 100 fell 3.5% on Friday and 6.65% in October, its worst monthly performance since March 2025. A consortium from the United Arab Emirates, including the state-backed MGX fund, is expected to be the largest participant.
Anthropic is also competing for investor attention, preparing an IPO next month at a valuation of $1.5 trillion or more.
why it matters
The combination of a lower OpenAI valuation and weakness in tech puts pressure on AI-linked companies and pushes investors to scrutinize infrastructure spending more closely. Analysts warn that the same mood could also weigh on Anthropic's upcoming IPO.
market impact
US tech and AI companies: lower valuations and the sell-off pressure the Nasdaq 100.
- Nasdaq 100 pressure down — tech sell-off and doubts about AI spending
- AI-linked stocks pressure down — a lower OpenAI valuation and worries about AI costs
tags
instruments
sources
- OpenAI IPO Valuation Target Reportedly Trimmed By $150B After Nasdaq 100 Registers Worst Month Since March 2025 Following Brutal Tech Sell-Off — Stocktwits, 31 October 2026 at 11:30 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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