OpenAI reportedly cuts new funding target to $20B from $30B

The Financial Times reported that OpenAI cut its target for the new round to $20B, with a first close expected to come in lower. The Wall Street Journal reported that the company has secured $11B so far and that some large investors responded tepidly. A later retail offering for wealthy individuals could lift the total to the $20B goal, and the round is expected to be led by investors from the United Arab Emirates.

Earlier reports had put the raise at $30B at a $1.25T valuation, ahead of a planned IPO. Wall Street unease about heavy AI infrastructure spending and a tech stock sell-off are cited as headwinds, along with questions about Anthropic's planned IPO. TechCrunch said it had asked OpenAI for comment.

For founders, the episode shows that even the largest private AI rounds depend on investor appetite and timing. A smaller first close followed by later tranches is a structure more teams may need to plan for when markets soften.