OpenAI Cuts Its Funding Round Target to $20 Billion With About $11 Billion Secured

OpenAI is now seeking up to $20 billion in its latest funding round, down from an earlier target of up to $30 billion, CNBC confirmed on October 31, 2026. The round has not closed and the figures could still change, a person directly familiar with the deal told CNBC.

The Financial Times first reported the $10 billion cut on October 30, and the Wall Street Journal reported that OpenAI has secured about $11 billion so far. The cut follows a week in which investors questioned whether big tech's spending on AI will pay off, CNBC reported, and comes five days after rival Anthropic made its IPO filing public. It is the second time in October that the reported terms of OpenAI's latest funding round have come down.

What changed in OpenAI's funding round?

OpenAI lowered its target from up to $30 billion to up to $20 billion, the FT reported on October 30, 2026, and CNBC confirmed the new figure the next day. According to the FT, OpenAI set Friday, October 30, as the deadline for investors to commit, and some investors chose to reduce their allocations (FT via CNBC).

The first close will likely raise less than $20 billion, the FT said, and a later offering for wealthy individuals at the same valuation could bring the total up to the target (FT via TechCrunch). A first close is the point at which a company banks the commitments it has so far while keeping the round open for more.

The Information separately reported that OpenAI lowered its fundraising target after decreasing its possible valuation. The Wall Street Journal's report was headlined "OpenAI Raises Less Than Half of $30 Billion Target in Latest Round."

How much has OpenAI actually raised?

OpenAI has secured about $11 billion in commitments, people familiar with the matter told the Wall Street Journal, and interest from some large investors was "tepid" (WSJ via TechCrunch). That is roughly 37% of the original $30 billion target and 55% of the new $20 billion one, by this site's arithmetic.

OpenAI told shareholders it expects to raise more in the coming weeks and will target family offices and high net worth individuals, the WSJ reported (via The Next Web). Investors from the United Arab Emirates are leading the round alongside the investment firm Coatue, as CNBC first reported on October 22. The FT named the state-backed fund MGX as likely to be among the largest backers, with SoftBank, Founders Fund, Sequoia Capital and Andreessen Horowitz also planning to invest (FT via The Next Web).

Did the valuation change too?

The reported headline valuation is still $1.25 trillion, but the FT described it as a post-money figure, which includes the new investment (FT via CNBC). When CNBC first reported the $1.25 trillion price on October 22, 2026, it described it as a pre-money valuation, the value before the new cash goes in, as covered in the earlier report on OpenAI's $1.25 trillion round.

If the FT's description is right, the price has moved down again. At $1.25 trillion post-money, a full $20 billion raise implies a pre-money value of about $1.23 trillion, and the $11 billion committed so far implies about $1.24 trillion, by this site's arithmetic. None of the open reports say whether OpenAI changed the basis of the price or whether the outlets describe the same terms differently.

The round started from a higher number. OpenAI first pitched $30 billion at a $1.4 trillion valuation and then lowered the price in October (TechCrunch, The Next Web). Its previous round, in March 2026, valued it at $852 billion post-money, TechCrunch reported on October 22.

Why are investors pulling back?

The open reports tie the smaller round to a broad selloff in AI stocks, though none quotes an investor explaining a decision. On October 30, 2026, Intel fell 25% on weak revenue guidance, Micron fell 5.5% and Nvidia fell 4%, CNBC reported, and Alphabet had its worst trading day ever on October 29 after its search revenue missed expectations.

Microsoft, Google and Amazon all issued capital spending figures or forecasts that came in below analysts' estimates, according to CNBC, in a week when investors asked whether spending on data centers and GPUs will deliver adequate returns. TechCrunch also pointed to Anthropic, which filed its S-1 publicly on October 26 and plans to list in November at a valuation of at least $1.5 trillion (FT via The Next Web).

What we don't know yet

• How much the first close will raise, and when it is signed.
• Whether the $1.25 trillion figure is pre-money or post-money in the final terms.
• Which investors reduced their allocations, and by how much.
• How much the later offering for wealthy individuals will add.
• Whether OpenAI will comment on the reports.