OpenAI reportedly cuts fundraising target to $20 billion amid AI stock selloff
OpenAI lowers its fundraising and valuation targets
OpenAI has cut the amount of money it plans to raise and the value it puts on itself, according to a Financial Times report published late Friday and covered by CoinDesk. The company had been seeking to raise $30 billion at a $1.4 trillion valuation. It is now looking to raise about $20 billion at a $1.25 trillion valuation.
This is a reported figure, not an official OpenAI announcement. The company has not confirmed the new targets in the supplied material.
Key numbers at a glance
- Previous fundraising target: $30 billion at a $1.4 trillion valuation (reported).
- New fundraising target: about $20 billion at a $1.25 trillion valuation (reported).
- OpenAI had previously put off IPO plans until 2027. An IPO is when a private company sells shares to the public on a stock market for the first time.
Why OpenAI is raising less
Two pressures are behind the change, per the report. First, anxiety about the AI boom has hit tech stocks hard. The Nasdaq 100, an index of large US tech companies, has slumped by about 10% in three weeks since hitting a record high on October 6, including a 4.5% drop on Friday.
Second, OpenAI is competing for investor money with rival Anthropic. Anthropic plans to go public in November and reportedly aims to raise as much as $100 billion at a $1.5 trillion valuation — a larger raise at a higher valuation.
What is confirmed and what is not
Confirmed: The Nasdaq 100's roughly 10% drop since its October 6 record high, and the 4.5% Friday drop, as reported by CoinDesk. Anthropic's plan to go public in November.
Reported but unconfirmed: OpenAI's new $20 billion target at a $1.25 trillion valuation, its earlier $30 billion target at $1.4 trillion, the IPO delay to 2027, and Anthropic's $100 billion raise goal at a $1.5 trillion valuation. These all come from the FT report and are labelled "reportedly"; OpenAI and Anthropic have not confirmed them in the supplied material.
Why this matters for crypto and tech investors
OpenAI is one of the largest private companies in the AI sector, and its fundraising terms are read as a signal of how willing big investors are to fund AI at high prices. A smaller raise at a lower valuation, if accurate, points to softer demand. The same AI selloff has coincided with weakness in crypto markets — bitcoin recently traded near $77,684, down from recent levels, as risk appetite cooled across tech.
What happens next
Anthropic's IPO is expected in November, which will test investor appetite for AI companies directly. OpenAI's IPO plans, per the report, remain pushed to 2027. Neither company's final fundraising outcome is settled, so the reported targets may change again.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.