---
title: OpenAI Reduces Funding Target by $10 Billion
url: https://www.dataloco.com/en/openai-reduces-funding-target-by-10-billion
published: 2026-11-02T21:20:31+00:00
language: en
section: Data
source: https://www.ithome.com/1/020/478.htm
organizations: OpenAI, MGX, Sequoia Capital, Founders Fund, Coatue, Andreessen Horowitz
publisher: Dataloco
---

# OpenAI Reduces Funding Target by $10 Billion

OpenAI has revised its latest funding target downward by $10 billion, bringing it from $30 billion to $20 billion. This adjustment was reported on October 31, 2026. The company is now seeking financing at a valuation of approximately $1.25 trillion.

Originally, OpenAI aimed to raise $30 billion at a valuation of $1.4 trillion, positioning this funding round as a final opportunity for investors before its anticipated initial public offering. However, concerns regarding substantial capital expenditures in the artificial intelligence sector, along with a significant decline in technology stocks, have led to a reassessment of investment returns in AI infrastructure.

In light of these factors, the Nasdaq 100 index, which is heavily composed of technology stocks, fell by 3.5% on the preceding Friday. This market shift has prompted investors to reconsider the sustainability and return periods associated with AI investments.

Sources indicate that OpenAI set a deadline for investors to commit financing by the end of the previous week. However, due to some investors reducing their subscription amounts, the initial funding amount may fall below the revised $20 billion target.

A consortium led by the UAE National Technology Fund, MGX, is expected to become the largest contributor to this funding round. As part of the deal, OpenAI may also have the option to lease newly constructed computing power in the UAE. Other notable participants in this funding round include Sequoia Capital, Founders Fund, Coatue, Andreessen Horowitz, and SoftBank.

Despite the reduced funding target, OpenAI's capital needs remain substantial. Earlier this year, the company raised $12.2 billion but plans to invest multiples of that amount into the computing power necessary for model training and operation. Additionally, OpenAI's funding strategy is also being influenced by its competitor, Anthropic, which is expected to go public next month, potentially reaching a valuation of $1.5 trillion or higher, thereby attracting significant investor interest and market attention.