OpenAI Cuts Funding Target to $20B at a $1.25T Valuation

On 2026-10-31, Financial Times reported that OpenAI had cut the target for its latest funding round from roughly $30B to about $20B, and lowered the implied valuation from $1.4T to $1.25T. The report attributed the move to an AI sector selloff that prompted some investors to reduce their commitments. Later the same day, 36Kr, citing Sina Finance and several people with knowledge of the matter, said the target had been reduced by about $10B amid a sharp drop in technology shares and growing unease over the scale of AI spending and the pace of returns. The round is now planned at about $20B, with a $1.25T valuation, according to that account. A subsequent Wall Street Journal report, also citing sources familiar with the matter, gave the first concrete sign of progress: OpenAI had secured roughly $11B in commitments, less than half of the initial $30B target, and expected to raise more in the coming weeks. That report put the round's valuation at $1.25T, below the earlier $1.4T target. ETtech rounded out the day by quoting Financial Times that OpenAI had slashed the target by $10B and was now seeking $20B at a $1.25T valuation. On the reasons for the cut, the sources do not fully align. Financial Times pointed to the AI selloff and investors paring commitments, while the account carried by 36Kr emphasized the tech stock rout and worries about AI spending and payback timing. No report reconciles the two explanations. The situation stands at a reduced $20B target, a $1.25T valuation, about $11B in commitments already in hand, and an expectation from the company that further fundraising will continue over the coming weeks.