OpenAI cuts funding target to $20B at $1.25T valuation, FT reports
OpenAI has lowered its fundraising goal to about $20 billion at a $1.25 trillion valuation, down from a previous target of $30 billion at $1.4 trillion, the Financial Times reported, citing people familiar with the matter. The company had pointed to a sharp revenue increase since July to justify nearly doubling its valuation from $852 billion, but a tech sell-off and growing investor scrutiny of…
Key points
- OpenAI now seeks $20B at $1.25T valuation, down from $30B at $1.4T, FT reports
- Nasdaq 100 fell 6.65% in October, worst month since March 2025
- UAE consortium including MGX to be largest investor with compute lease option
A consortium of UAE investment groups including state-backed MGX is expected to be the largest participant, with an option to lease newly developed computing power in the region. Founders Fund, Coatue, Sequoia Capital, Andreessen Horowitz and SoftBank also plan to take part. The initial close was expected to bring in less than $20 billion after some investors reduced allocations, and Friday was set as the deadline for commitments. OpenAI raised $122 billion in March.
OpenAI IPO Valuation Target Reportedly Trimmed By $150B After Nasdaq 100 Registers Worst Month Since March 2025 Following Brutal Tech Sell-Off
finance.yahoo.com · 31 October 2026Loading the full article…
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