OpenAI has slashed the target for its latest funding round by $10 billion, and is now seeking to raise $20 billion at a $1.25 trillion valuation, the Financial Times reported on Friday, October 30, citing people with knowledge of the matter. The move marks the latest revision to what had been pitched as a $30 billion bridge round ahead of the company’s anticipated public listing in 2027.

What the Financial Times Reported

According to the FT report relayed by Reuters, the ChatGPT maker cut its raise target by one third after weeks of investor resistance. The company had earlier aimed to raise $30 billion at a $1.4 trillion valuation, Reuters had previously reported, before trimming the valuation target to $1.25 trillion in late October.

The revision lands one day after the October 30 commitment deadline the company had reportedly set for prospective backers, a sign that demand at the original terms came in weaker than expected. The FT had reported as early as October 22 that OpenAI could raise less than $30 billion depending on investor interest, and Friday’s report shows that scenario playing out.

Fact card: The Cut

How the Deal Got Here

The round has been shrinking for weeks. On October 22, the FT reported that OpenAI had cut its valuation target from $1.4 trillion to $1.25 trillion after some investors balked at the higher price, with documents reviewed by the paper showing Morgan Stanley and the technology fund Dragoneer had offered the round to the bank’s private wealth clients at a $1.4 trillion pre-money valuation.

Multiple people familiar with the fundraising process told the FT that client demand was weaker than in OpenAI’s previous rounds, according to coverage of the FT report. Some investors reported funding fatigue after backing OpenAI’s earlier raises, including $40 billion in March 2025 and a record $122 billion in March 2026 at a post-money valuation of $852 billion.

CNBC had reported on October 22 that investment firm Coatue and funds from the United Arab Emirates were discussing leading the round, which OpenAI has framed internally as an opportunistic bridge to its own IPO, likely in the first half of 2027.

Fact card: The Road Here

Why It Matters

Even at the reduced $1.25 trillion valuation, OpenAI would still be worth nearly 50% more than the $852 billion valuation set in March, making it one of the most valuable private companies in history if the round closes. But the cut is the first visible sign that the record-setting fundraising pace of the AI industry may be cooling, with investors questioning whether rapid AI infrastructure spending can deliver sustainable returns.

The timing also adds a public-market yardstick to the debate. Anthropic filed its Form S-1 publicly on October 26, applying to list on Nasdaq under the ticker ANT with $16.3 billion in first-half 2026 revenue, according to the filing, and reports have put its possible valuation at $1.5 trillion to $2 trillion. Whatever price Anthropic’s IPO settles on will become the benchmark OpenAI’s private round gets measured against.

OpenAI has not publicly commented on the FT report, and the final amount remains subject to investor interest and terms.

Sources