EL7.AI
GeneralMedium•31 October 2026•
4 min read

OpenAI cuts funding-round target by $10 billion to $20 billion at $1.25 trillion valuation

Key Facts

1OpenAI cut its funding-round target by $10 billion to $20 billion, at a targeted valuation of $1.25 trillion.
2The previous target was to raise $30 billion at a $1.4 trillion valuation.
3OpenAI closed its previous round with $122 billion in capital commitments and a post-money valuation of $852 billion.
4OpenAI said its revenue had reached $2 billion a month and that the enterprise segment accounted for more than 40% of total revenue.

OpenAI cut its fundraising target for its latest funding round by $10 billion to $20 billion, at a targeted valuation of $1.25 trillion, Reuters reported, citing a Financial Times report on October 30. The company had previously targeted raising $30 billion at a $1.4 trillion valuation, according to the same report. The revision puts the new funding target below the previous level, while the valuation cited in the report on the round cut remains $1.25 trillion. The report gave no reason for the cut, so the change is not attributed to market moves or concerns about AI profitability. The new round follows a major funding round that OpenAI closed in March.

Before the target cut was announced, TechCrunch reported, citing CNBC on October 22, that OpenAI was working to raise up to $30 billion at a pre-money valuation of $1.25 trillion. That figure was the round's target ceiling at the time, while terms remained under negotiation, according to the report. A comparison of October reports shows the targeted funding amount shifting from a maximum of $30 billion to a stated target of $20 billion. The pre-money valuation in the October 22 report and the valuation cited with the new target are both $1.25 trillion, while an earlier report had cited a target valuation of $1.4 trillion. The figures show differences across successive reports on the round's terms, with no details available on a final agreement or the investors in its updated target.

On October 5, Bloomberg reported that OpenAI was in talks with Emirati investment funds, including MGX, to participate in a round targeting $30 billion. The funds discussed investing up to $10 billion combined, according to the report. TechCrunch then reported on October 22 that the round, of up to $30 billion, was being led by Coatue and Emirati investors, with terms still under negotiation. These reports document talks about the round before its target was cut, but do not specify whether any of those parties will participate in the new $20 billion target. References to investors therefore remain tied to reports of earlier negotiations and do not confirm commitments to the round after its revision.

The March round provides context on the scale of funding that preceded the current effort: OpenAI announced on March 31 that it had closed the round with $122 billion in capital commitments, at a post-money valuation of $852 billion. The company said the round was anchored by its strategic partners Amazon, NVIDIA and SoftBank, with participation from its long-term partner Microsoft. On October 1, SoftBank said it had completed its $30 billion investment in OpenAI as part of that round, according to Reuters. The group's cumulative investment in the company reached $64.6 billion, giving it a 13% stake, the report said. These figures show the size of the previous round and SoftBank's role in it, but do not establish the group's participation in the current financing.

Alongside the close of the March round, OpenAI announced that its revenue had reached $2 billion a month and that the enterprise segment accounted for more than 40% of total revenue. The company also said its revenue was growing four times faster than that of companies that defined the internet and mobile eras, such as Alphabet and Meta. These indicators present the company's account of business growth when it announced the previous round; they are figures issued by the company, not terms disclosed for the current round. In September, Chief Executive Sam Altman said an OpenAI IPO in 2026 would be poorly timed because of safety considerations and did not specify an alternative date. This sets out what has been disclosed about the IPO timing, with no indication that the funding-target cut changes any timeline that has not been announced.

The target-cut report came on a day when the Nasdaq fell 2.9%, its biggest daily drop since June 5, and stood 7.8% below its record high set on October 6. Reuters linked the sell-off to concerns about heavy AI spending following results from Amazon and Intel. In the same session, Nvidia shares fell 4.2% and AMD shares dropped 10.9%, while the broader semiconductor index declined 7.2%. Coverage attributed those moves to concerns about rising AI spending and limited visibility on returns. But the market moves coinciding with the funding report do not establish that the declines in the indexes or spending concerns caused OpenAI to lower its round target.