# OpenAI cuts funding target for new round to $20 billion

> OpenAI cut its latest funding target to $20 billion from $30 billion.

*Investor demand has cooled, and the first close is expected to come in below that figure.*

By Bez · FeaturedDaily
Canonical: https://featureddaily.com/news/openai-cuts-funding-target-for-new-round-to-20-billion

**What happened:** OpenAI has cut its target for its latest funding round to $20 billion, down from $30 billion, according to the Financial Times. The FT first reported the lower target on Friday 30 October. [TechCrunch's report](https://techcrunch.com/2026/10/31/openai-reportedly-lowers-funding-target-for-new-round/) is dated 31 October.

**The numbers:** Earlier reports put the raise at $30 billion, first at a $1.4 trillion valuation and then at $1.25 trillion ahead of a planned IPO. The first close is expected to be lower than $20 billion, but no figure has been given. The Wall Street Journal reports that OpenAI has secured $11 billion so far. That figure comes from the WSJ alone, and no independent confirmation has been found.

**The catch:** The WSJ describes the response from some large investors as "tepid."

**Who's affected:** The round will be led by a group of investors from the United Arab Emirates, according to the FT. A later retail offering for wealthy individuals could bring the total to $20 billion. No investors are named.

**Context:** Reports tie the funding difficulties to Wall Street wariness about heavy AI infrastructure spending and a broader tech stock selloff.

**The rivals:** TechCrunch says Anthropic's planned IPO could also face challenges.

**What's next:** An IPO is planned, but no date has been given. TechCrunch contacted OpenAI for comment, and its article includes no response.

## Key takeaways

- Target cut from $30 billion to $20 billion
- WSJ reports $11 billion secured so far
- IPO planned, but no date given

## Sources

- [OpenAI reportedly lowers funding target for new round](https://techcrunch.com/2026/10/31/openai-reportedly-lowers-funding-target-for-new-round/) — TechCrunch, 2026-10-31