OpenAI cuts funding target by $10B to ~$20B at $1.25T valuation as investors trim commitments amid AI selloff
What happened
The Financial Times reported Friday, Oct. 30 that OpenAI cut the target for its latest funding round by $10 billion, to about $20 billion, and lowered the valuation it is seeking to $1.25 trillion from $1.4 trillion pitched last month. The Wall Street Journal separately reported Friday that only about $11 billion was committed by the Oct. 31 deadline, less than half the original $30 billion ask, with several investors reducing their allocations. OpenAI plans to raise additional money from family offices and high-net-worth individuals in the coming weeks to reach $20 billion.
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Start your free 14-day trialWho’s affected
- AI-infrastructure complex: Nvidia (NVDA), AMD, Broadcom, Microsoft (MSFT) — OpenAI's chip and compute spending is a demand anchor for the AI capex chain. Meta (META), Alphabet (GOOGL), Amazon (AMZN) — read-through on investor appetite for AI capex and private AI valuations. Anthropic (upcoming IPO) — a weakened OpenAI raise could either ease competitive bidding for investors or signal soft demand into the IPO.