OpenAI, the company behind ChatGPT, has reportedly reduced its latest fundraising target by $10 billion as investor appetite for large artificial intelligence deals faces fresh pressure.
The company is now seeking to raise around $20 billion at a valuation of $1.25 trillion, down from its earlier target of $30 billion at a $1.4 trillion valuation, according to a FT report published on October 30, citing people familiar with the discussions.
The revised plan comes as some investors have reportedly reduced their commitments amid a broader selloff in technology stocks and growing questions about the returns on massive AI investments.
For CEO Sam Altman, the fundraising challenge comes at a crucial time. OpenAI needs substantial capital to expand its computing infrastructure, develop advanced AI models and compete with Anthropic and other technology companies.
Investors reassess OpenAI’s $20 Bn funding round
The reported funding round is expected to attract major institutional investors from the US and the Middle East.
A group of investors from the United Arab Emirates, including state-backed investment firm MGX, is expected to be the largest participant, according to the report. Other expected participants include SoftBank, Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz.
However, the initial closing is reportedly expected to fall short of the revised $20 billion target after some investors reduced their planned allocations.
The development reflects a more cautious investment environment, even as AI companies continue to seek enormous amounts of capital to fund data centres, chips and computing capacity.
Anthropic’s IPO adds pressure to fundraising efforts
Competition from Anthropic is another factor shaping OpenAI’s fundraising plans.
Anthropic is preparing for a potential stock market listing in November, with the FT reporting an expected valuation of at least $1.5 trillion. The proposed listing could attract investors who are also being approached for OpenAI’s funding round.
OpenAI is reportedly targeting a public listing in 2027, although no final timeline has been confirmed.
The competition is no longer limited to developing better AI models. Both companies are also competing for computing resources, enterprise customers, strategic partnerships and long-term investor capital.
OpenAI has already raised $122 billion in 2026
The latest fundraising effort follows a major capital raise earlier this year. OpenAI announced on March 31, 2026, that it had secured $122 Bn in committed capital at a post-money valuation of $852 Bn.
The round was co-led by SoftBank, alongside investors including Andreessen Horowitz, D. E. Shaw Ventures, MGX, TPG and accounts advised by T. Rowe Price. Sequoia Capital, Coatue and other global investment firms also participated.
The company said the capital would support its next phase of AI development, including infrastructure expansion and wider deployment of its products.
The reported reduction in its latest fundraising target does not necessarily signal weaker demand for AI products. It does, however, highlight the growing importance of investor confidence, capital discipline and the ability to turn heavy infrastructure spending into sustainable business returns.
For Sam Altman and OpenAI, the next challenge is to secure the capital needed for expansion while convincing investors that the economics of the AI business can justify trillion-dollar valuations.
