OpenAI Round Secures $11 Billion in Commitments After Target Cut to $20 Billion
Key Facts
OpenAI has secured about $11 billion in commitments in its latest funding round, Investing.com reported, citing The Wall Street Journal on October 31, 2026. The commitments do not represent a final closing of the round, according to the report. Reuters reported the previous day that the company had cut its funding target by $10 billion, from $30 billion to about $20 billion. Reuters also expected the first close to raise less than $20 billion after some investors reduced their allocations. That puts the reported commitments below the revised target, while the round is still raising funds.
OpenAI was valued at $1.25 trillion in the financing, according to The Wall Street Journal report cited by Investing.com. That is below the $1.4 trillion the company initially sought. The reported valuation follows the March 2026 round, which OpenAI said it closed with $122 billion in capital commitments at a post-money valuation of $852 billion. The figures show the reported valuation rising from $852 billion in March to $1.25 trillion in the latest round. The latest amount, about $11 billion, remains reported commitments rather than proceeds from a final close.
A consortium of Emirati investors, including state-backed MGX, is expected to be the round's largest participant, Reuters reported. In return, OpenAI will receive an option to lease newly developed computing capacity in the region, the report said. The arrangement links financing for the company with potential access to regional computing resources, according to the report's details. Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to participate in the round. The report did not specify their stakes or the value of any individual contribution.
The target cut comes as Reuters has linked weak demand to concerns about the scale of AI spending and the sustainability of its funding. The agency also described a sell-off in technology stocks as driven by AI-related concerns. On Friday, October 30, the Nasdaq Composite fell 2.9%, and the S&P 500 dropped 1.8%, according to The Associated Press. The agency attributed the stock decline to investors' concern that enthusiasm for AI had pushed prices too high. Reuters also noted that higher borrowing costs could make debt-funded investment more expensive and harder to justify.
Competition for investors is intensifying as Anthropic nears its public offering. Reuters said OpenAI moved quickly to raise funding in part to secure commitments ahead of its rival's expected offering in mid-November. The agency reported that the two companies are targeting an overlapping investor base. Anthropic filed for an initial public offering on October 26, while Axios reported that trading in its shares could begin before Thanksgiving. OpenAI is also seeking a 2027 listing, according to a Reuters report. That timeline places the funding round amid competition between the two companies for capital ahead of moves toward public markets.
OpenAI had told investors it had reached an annualized revenue run rate of $50 billion, with the rate expected to rise to $70 billion by the end of 2026, Reuters reported on October 19. On infrastructure spending, Morgan Stanley projected that total capital spending on AI infrastructure would exceed $1 trillion in 2027, according to Reuters. This comes as companies face concerns about the scale of spending and the sustainability of its funding. The revenue figures cited in the report show the company expecting its annualized revenue run rate to increase over the rest of 2026. The next milestone in the race for capital is Anthropic's expected offering in November, alongside OpenAI's target of listing in 2027.