OpenAI Cuts Fundraising Target From $30 Billion to $20 Billion Amid Tepid Investor Response
OpenAI has secured $11 billion but cut its fundraising target to $20 billion from $30 billion after a “tepid” response from some major investors. The round is led by UAE investors, with a retail offering potentially closing the gap.
OpenAI has lowered its fundraising target for its latest funding round from $30 billion to $20 billion, according to reports published October 31, 2026, by the Financial Times and the Wall Street Journal. The company has secured $11 billion so far, and its fundraising efforts have met with a “tepid” response from some large investors, the Journal reported.
OpenAI had previously been reported to be raising $30 billion at valuations of $1.4 trillion and then $1.25 trillion, ahead of a planned IPO. The revised $20 billion target reflects a significant step down from those earlier figures, with the first close of the round expected to come in even lower than $20 billion.
The round is being led by a group of investors from the United Arab Emirates, according to the Financial Times. A subsequent retail offering aimed at wealthy individuals could bring the total raised up to the $20 billion target.
The funding challenges could be attributed, in part, to broader market conditions. Wall Street investors have grown wary of heavy AI infrastructure spending, contributing to a major sell-off in tech stocks. Anthropic’s planned IPO is also reported to be facing challenges.
TechCrunch reported that it reached out to OpenAI for comment. The developments suggest that even the most prominent AI companies may face headwinds when seeking large-scale private capital in the current investment climate.