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OpenAI Cuts Funding Target to $20 Billion From $30 Billion in New Round
OpenAI is seeking up to $20 billion in a new funding round, down from a $30 billion target.
Key points
- OpenAI is seeking up to $20 billion in its new funding round, down from an earlier target of up to $30 billion.
- Investors from the United Arab Emirates are leading the round alongside Coatue.
- The Financial Times reported a $1.25 trillion post-money valuation target, and investors faced a Friday commitment deadline.
Why it matters. The cut comes as investors question whether big tech spending on AI, including data centers and GPUs, will deliver adequate returns, and AI-linked stocks sank on Friday.
OpenAI is seeking up to $20 billion in a new funding round, CNBC confirmed on Saturday, paring back an earlier target of up to $30 billion. The Financial Times first reported a $1.25 trillion post-money valuation target for the round. Investors from the United Arab Emirates are leading the round alongside Coatue, and some investors have reduced their allocations. The round has not closed and the figures are subject to change, a person directly familiar with the deal told CNBC.
Latest updates
OpenAI Cuts Funding Target to $20 Billion From $30 Billion in New Round
OpenAI is seeking to raise up to $20 billion in a new funding round, CNBC confirmed on Saturday. The figure is down from an earlier target of up to $30 billion. A person directly familiar with the deal told CNBC that the round is still in progress and has not closed, so the figures are subject to change. CEO Sam Altman spoke at Oracle AI World in Las Vegas on October 27, 2026. The report does not say why the target was reduced.
OpenAI Seeks $30 Billion Funding At $1.25 Trillion Valuation
The San Francisco-based AI firm is raising up to $30 billion in new capital. Sources familiar with the deal indicate the valuation reflects the massive demand for generative AI infrastructure. This funding round is intended to sustain operations and scaling before the company goes public. The involvement of UAE investors marks a significant international capital injection into the US AI sector.