# OpenAI reportedly cuts funding target to $20B at $1.25T valuation

Digest AI · Business & Funding · published 2026-10-29T17:13:00Z · updated 2026-10-31T02:30:02Z

Canonical: https://digestai.news/story/openai-cuts-funding-target-by-10b-and-lowers-valuation-aim-to-1-25t

## Summary

OpenAI has lowered its fundraising target from $30 billion to about $20 billion and reduced its pre-money valuation from $1.4 trillion to $1.25 trillion, according to multiple reports. The round is described as bridge financing ahead of a potential initial public offering in early 2027. Investor demand has cooled amid a broader tech-stock selloff that erased roughly $2 trillion in chipmaker market value in early October 2026. Potential lead investors include Coatue Management and United Arab Emirates-based funds, while some existing backers are reportedly fatigued or waiting to see how rival Anthropic's planned IPO performs.

The Financial Times and IJR report the new raise size at approximately $20 billion, a $10 billion reduction from the original $30 billion goal. Cryptobriefing states the company is still seeking up to $30 billion after a $10 billion cut, creating ambiguity about the final figure. All three sources agree on the revised $1.25 trillion valuation target and the October 30 deadline to finalize terms. Cryptobriefing adds that OpenAI was valued at $852 billion after its March 2026 round, making the new target a roughly 50% increase.

## Key points

- OpenAI cuts valuation target to $1.25T from $1.4T pre-money
- Raise size reported as ~$20B by FT and IJR, up to $30B by Cryptobriefing
- Bridge round ahead of potential 2027 IPO; deadline October 30

## Why it matters

The scaled-back round signals investor appetite for AI infrastructure spending may be peaking, even for the sector leader. Anthropic's upcoming IPO is now a key benchmark for private-market AI valuations.

## How the reports compare

Agree: All three sources report OpenAI lowered its valuation target to $1.25 trillion from $1.4 trillion for a bridge round before a potential 2027 IPO.

Differ:
- Financial Times and IJR report the raise size is now ~$20 billion; Cryptobriefing says the company seeks up to $30 billion after a $10 billion reduction
- Cryptobriefing alone cites a March 2026 valuation of $852 billion and names Coatue Management and UAE funds as potential leads

## Sources

1. [OpenAI trims its funding goal by $10 billion as AI investor demand cools](https://cryptobriefing.com/openai-cuts-funding-goal-valuation-target) (cryptobriefing.com, 2026-10-29)
2. [Sources: OpenAI has secured ~$11B in commitments for its latest funding round, less than half its initial $30B target, and expects to raise more in coming weeks](https://wsj.com/tech/ai/openai-raises-less-than-half-of-30-billion-target-in-latest-round-91aecdc5) (wsj.com, 2026-10-31)
3. [Sources: OpenAI now seeks ~$20B at a $1.25T valuation for its latest round, from $30B at a $1.4T valuation, as some investors cut commitments amid an AI selloff](https://ft.com/content/7a3ad950-1b3b-4d9e-8c15-65a61ae6180f) (ft.com, 2026-10-31)
4. [OpenAI reportedly cuts $10B from funding goal](https://ijr.com/discover/openai-reportedly-cuts-10b-from-funding-goal-4747fa6d) (ijr.com, 2026-10-30)

## Cite

Digest AI, "OpenAI reportedly cuts funding target to $20B at $1.25T valuation", 29 October 2026, https://digestai.news/story/openai-cuts-funding-target-by-10b-and-lowers-valuation-aim-to-1-25t

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