OpenAI reduces its $10 billion fundraising goal amid doubts about AI

OpenAI has reportedly reduced its fundraising target by 10 billion dollars. The company behind ChatGPT is now seeking 20 billion dollars, down from the initial 30 billion. Its targeted valuation also drops from 1,400 to 1,250 billion dollars. This revision comes as investors become more cautious about the colossal spending in AI.

OpenAI reduces its AI ambitions by $10 billion

The change is significant. At the end of September, OpenAI was still seeking 30 billion dollars from investors, with a valuation close to 1,400 billion. Cointribune had then reported OpenAI’s financial ambitions, a few months after a previous 122 billion dollar fundraising round closed in March.

A month later, conditions have changed. According to the Financial Times, citing several people close to the discussions, OpenAI now aims for about 20 billion dollars. The initial target has thus been reduced by a third.

The valuation offered to investors simultaneously falls to 1,250 billion dollars. That’s 150 billion less than the amount considered in September, a decrease of about 10.7%. Investors were supposed to communicate their commitments by Friday, October 30. However, this first financial closing might raise less than the 20 billion sought.

Some participants reportedly reduced the amounts they planned to invest. OpenAI has not officially confirmed these new targets. When contacted by the media, the company did not provide detailed comments on the reported information.

This revision comes after several months of rapid revenue growth for OpenAI. The company remains a leading developer of artificial intelligence models, but it must finance particularly high computing needs.

Wall Street begins to doubt AI spending

On October 30, the Nasdaq 100 lost 3.5%. The American index, heavily exposed to technology companies, had briefly declined about 10% from its record on October 6. Semiconductor manufacturers and several companies related to AI infrastructures also suffered significant sales.

Investors are notably questioning the profitability of the hundreds of billions of dollars dedicated to data centers, chips, and the electricity needed to run the models.

This debate is not new. On October 22, billionaire Ken Griffin already warned about the risks of an AI-related financial bubble. The founder of Citadel believes investments in computing power could exceed the real needs of some companies.

At OpenAI, planned expenses remain considerable. According to internal projections, the company was considering nearly 856 billion dollars in cumulative computing and infrastructure expenses by 2030.

Its forecasts also showed about 278 billion dollars in cumulative negative free cash flows over the 2026-2030 period. These figures are projections, not losses already incurred. OpenAI anticipates strong revenue growth thanks to ChatGPT subscriptions, enterprise services, and the use of its models by developers. But investors are now looking more closely at the ratio between expected growth and the capital needed to finance it.

Anthropic further complicates OpenAI’s financing

OpenAI also has to deal with a particularly active competitor. Anthropic, the company behind Claude, is preparing an initial public offering that could happen as early as November 2026. Its valuation could reach at least 1,500 billion dollars. The amount remains indicative and will depend on market conditions. The two companies partly solicit the same major investors.

OpenAI would seek to finalize its fundraising before Anthropic’s arrival on the markets. Its own IPO is still envisaged for 2027, without a definitively confirmed schedule. Cointribune had already examined the stock market plans of OpenAI and Anthropic, as well as the possibilities of exposure to their valuations before their listing.

Despite the reduction of its target, OpenAI would still have several significant backers. A consortium of investors from the United Arab Emirates, including the MGX fund, could become the main participant in this operation. The contemplated deal would also give OpenAI the possibility to lease new computing capacities in the region.

Founders Fund, Coatue, Sequoia Capital, Andreessen Horowitz, and SoftBank are among other prospective investors. A second phase could then allow major private fortunes to participate in the financing.