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OpenAI lowers its funding target

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OpenAI lowered its target for its latest funding round by $10 billion, as investor concerns over its heavy artificial-intelligence spending reportedly intensified.

Reposted by Greg Linden, Brian Jm Quinn

29%
edzitron.com
Less than a month ago, OpenAI was looking to raise “at least” $30 billion at a valuation of $1.4 trillion.

Today it raised $11 billion at $1.25 trillion valuation and faced “tepid” interest from investors.

It is unclear what OpenAI does at this point. That’s not even a quarter’s compute.
OpenAI has raised less than half of the $30 billion it had initially targeted for its latest funding round, with market jitters over the Al trade dampening investor appetite for one of the industry's biggest names. After receiving tepid interest from some large investors, OpenAl has so far secured roughly $11 billion in commitments for the new financing, according to people familiar with the matter. The deal values the company at $1.25 trillion-less than the $1.4 trillion valuation that it had earlier hoped to achieve. Bloomberg.com https://www.bloomberg.com OpenAl in $30 Billion Round Talks With UAE Funds, BlackRock Oct 5, 2026 - OpenAl is looking to raise at least $30 billion in capital at a valuation of about $1.4 trillion, and has held talks with existing investors ... OpenAl told shareholders it expects to try to raise more money for the round in the coming weeks and target family offices and high net-worth individuals, the people said. The maker of ChatGPT and Codex is now hoping to raise up to $20 billion, one of the people said.
October 31, 2026 at 2:56 AM

by Grady Booch

31%
booch.com
Thoughts and prayers.

www.wsj.com/tech/ai/open...
OpenAI Raises Less Than Half of $30 Billion Target in Latest Round
The ChatGPT maker’s latest funding round values it at $1.25 trillion, less than its $1.4 trillion target.
www.wsj.com
October 31, 2026 at 9:12 AM

Reposted by Aric Rindfleisch

25%

Reposted by Greg Linden

21%
edzitron.com
This is really bad! OpenAI is not “cutting the round,” its investors are not interested in investing as much as OpenAI wants, and indeed could invest *less* than $20bn. Unclear what OpenAI’s plan is here, because if Anthropic only gets $1.4tn to $1.5tn I dunno why you’d want OpenAI at $1.25tn.
FINANCIAL TIMES It set a deadline for investors to commit to the funding round by Friday. That "first close" is expected to bring in less than $2obn, after some of its investors lowered their allocations to the round, according to the people. A consortium of investment groups from the United Arab Emirates, including state-backed tech fund MGX, is expected to be the largest participant in the round and, as a part of the deal, OpenAl will have an option to lease newly developed computing power in the region, added the people.
October 31, 2026 at 1:24 AM

Reposted by Greg Linden

21%
edzitron.com
Yeah it turns out that when you’re raising entirely on hype that when the hype breaks it’s hard to keep people excited
One of the group's backers said they had kicked off the fundraising process amid enthusiasm for the Al trade but had been caught out by a sharp reversal in the market.
October 31, 2026 at 1:28 AM
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