---
title: "Even OpenAI Is Feeling the AI Selloff? ChatGPT Maker Reportedly Cuts Funding Target by $10 Billion as Investors Tighten Purse Strings"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/303826050.md"
description: "OpenAI has reduced its fundraising target by $10 billion to approximately $20 billion and lowered its desired valuation from $1.4 trillion to $1.25 trillion, citing investor caution amid a broader AI stock selloff. The company aims to close the round ahead of rival Anthropic's IPO, with UAE investors expected to lead participation."
datetime: "2026-10-31T05:50:17.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/303826050.md)
  - [en](https://longbridge.com/en/news/303826050.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/303826050.md)
generator: "portal-rs"
---

# Even OpenAI Is Feeling the AI Selloff? ChatGPT Maker Reportedly Cuts Funding Target by $10 Billion as Investors Tighten Purse Strings

Even as it races to expand its artificial intelligence (AI) infrastructure and fend off rivals, **OpenAI** is reportedly scaling back its fundraising ambitions as a broader tech stock rout fuels investor concerns over AI spending.

## **OpenAI Lowers Funding Target and Valuation**

The **ChatGPT** maker is now seeking about $20 billion in its latest funding round, down $10 billion from its original target, the Financial Times reported Friday, citing people familiar with the matter.

OpenAI has also lowered its desired valuation to $1.25 trillion from $1.4 trillion, the report said.

The company set a Friday deadline for investors to commit to the round. However, the report said the initial close is expected to bring in less than $20 billion after some investors reduced their allocations.

OpenAI did not immediately respond to Benzinga’s request for comment.

 **Read Also: OpenAI Says Its AI Solved Three Major Scientific Problems — Including One That Could Rewrite Computer Science** 

## **UAE Investors Expected to Lead OpenAI Funding Round**

A consortium of UAE investors, including state-backed technology fund **MGX**, is expected to be the largest participant in the funding round.

As part of the arrangement, OpenAI could reportedly secure an option to lease newly developed computing capacity in the region.

Venture capital firms **Founders Fund**, **Coatue, Sequoia Capital** and **Andreessen Horowitz** are also expected to participate. Wealthy individuals could get another opportunity to invest through a subsequent retail offering at a $1.25 trillion valuation.

Last week, the publication also reported that OpenAI is looking to raise approximately $30 billion in new capital at a valuation of around $1.25 trillion, scaling back its previous fundraising ambitions.

This valuation would represent an increase of nearly 50% from its current $852 billion valuation, but falls short of the $1.4 trillion figure the company had earlier discussed with prospective investors.

## **AI Stock Selloff Raises Investor Concerns**

The fundraising pullback comes as U.S. technology stocks face mounting pressure over massive AI infrastructure investments.

The tech-heavy Nasdaq Composite fell about 2.9% Friday and is down 7.8% from its Oct. 6 record closing high.

OpenAI is also pursuing a potential 2027 stock market listing and reportedly wants to complete its fundraising ahead of rival **Anthropic’s** anticipated IPO, as both companies compete for a similar pool of investors, Reuters reported.

In August, reports said OpenAI’s annualized revenue run rate climbed past $40 billion, nearly doubling since the end of 2025. President **Greg Brockman** also said the figure jumped more than 20% in July alone.

***Disclaimer*:** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.*

 **Read Also: Sam Altman Announces OpenAI’s Budget-Friendly GPT-6.1 Terra, Touts ‘New Era’ of Computer Use** 

Image via Shutterstock

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**