EL7.AI
GeneralMedium•2 November 2026•
4 min read

OpenAI Cuts $30 Billion Funding Round Target to $20 Billion Amid Tech Stock Retreat

Key Facts

1OpenAI cut the round’s target to about $20 billion from $30 billion.
2Wealthy individuals may participate in a later offering at a valuation of $1.25 trillion.
3The Nasdaq fell 2.9% on October 30 and stood 7.8% below the record closing high it set on October 6, 2026.
4OpenAI closed its previous round on March 31, 2026, with $122 billion in committed capital and a post-money valuation of $852 billion.

OpenAI has cut the target for its new funding round to about $20 billion, down from a plan to raise $30 billion, according to a report cited by Reuters on October 30. The target revision comes amid a sell-off in technology stocks and investor concerns over the scale of spending on artificial intelligence. The report said some investors had reduced their allocations to the round. A consortium of UAE investors, including state-backed fund MGX, is expected to take the largest share. The potential arrangement includes an option for the company to lease computing capacity being developed in the region, linking the financing to securing the infrastructure needed for its expansion.

A lower target does not mean the proposed valuation for the round has fallen by the same amount: the report says wealthy individuals may have an opportunity to invest in a later offering at a valuation of $1.25 trillion. These terms remain part of potential arrangements, and the available evidence contains no announcement that the new round has closed. Venture capital firms including Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz are also expected to participate. This would put the round within an investor base extending beyond sovereign funds and strategic investors. The report says the amount sought has shrunk while the valuation for the later offering remains high.

The financing adjustment came in a week when U.S. technology stocks fell amid concerns over massive spending on artificial intelligence. The Nasdaq fell 2.9% on Friday, October 30, leaving it 7.8% below the record closing high it set on October 6. These moves provide the market context in which AI companies are negotiating large funding rounds, as investors reassess infrastructure costs and the returns expected from them. According to the report, some investors’ reduced allocations were among the factors linked to the smaller target. The report did not say the decision was intended to stabilize the company’s valuation.

The significance of computing in the round depends on its place in OpenAI’s stated strategy. On March 31, 2026, the company said it had closed a previous round with $122 billion in committed capital at a post-money valuation of $852 billion. It said the round was anchored by strategic partners Amazon, NVIDIA and SoftBank, with Microsoft continuing to participate; MGX also took part in the group that led the round alongside SoftBank. The company said at the time that it was generating $2 billion in monthly revenue and that its revenue was growing four times faster than that of the companies that defined the internet and mobile eras. These figures place the new round within a financing trajectory the company has linked to expanding its capacity to develop AI.

OpenAI had announced a new $110 billion investment on February 27, 2026, at a pre-money valuation of $730 billion. The investments announced at the time included $30 billion from SoftBank, $30 billion from NVIDIA and $50 billion from Amazon. This previous round shows the extent to which large contributions from strategic partners have supported the expansion of financing and computing capacity. The current round, according to the report, is moving toward including a UAE consortium and a group of venture capital firms, alongside the possibility of leasing computing capacity in the region. The available evidence does not show a final close or completed terms for the new round.

OpenAI is also pursuing the round in light of its listing plans: a Reuters report said it is seeking to list its shares in 2027. It added that the company was keen to close the funding round partly ahead of Anthropic’s expected listing, as the two companies compete for a similar investor base. In a possible subsequent step, wealthy individuals may be able to participate in an offering at a valuation of $1.25 trillion. The report does not specify a date for that offering or a deadline for closing the current round. Expected UAE participation and the regional computing option remain among the main elements of the arrangement under negotiation.