OpenAI trims latest funding target by $10 billion amid tech stock selloff
OpenAI has lowered its new funding round target to about $20 billion at a $1.25 trillion valuation, amid investor worries over AI infrastructure spending, FT reports.
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what happened
The Financial Times, citing people with knowledge of the matter, reports that OpenAI has cut the target for its newest funding round by $10 billion. The company is now seeking about $20 billion at a valuation of roughly $1.25 trillion, down from $1.4 trillion it targeted last month. Investors have a Friday deadline to commit, but the first close may bring in less than $20 billion because some investors reduced their allocations.
Reuters had previously reported that the company, which plans a US listing next year, was racing to close the round partly to get ahead of rival Anthropic's highly anticipated public debut in mid-November. CNBC reported last week that the deal was nearing completion. OpenAI did not immediately respond to a request for comment.
why it matters
The revised target reflects investor concern about the pace of AI infrastructure buildout amid weakness in US tech shares. The Nasdaq Composite fell 2% this week, its third straight weekly decline, after quarterly results from Intel and Amazon showed heavy cash burn tied to large investments.
market impact
US tech: doubts about AI infrastructure weigh on tech shares and the Nasdaq Composite
- Nasdaq Composite pressure down — doubts about AI infrastructure spending and cash burn at large tech firms
tags
instruments
sources
- OpenAI slashes funding goal by $10B amid tech selloff: FT — Seeking Alpha, 31 October 2026 at 11:55 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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