According to the Financial Times, OpenAI has cut its fundraising target by $10 billion, amid a slump in tech stocks.

October 30 (Reuters) — OpenAI has reduced the target amount for its latest funding round by $10 billion, amid a sell-off in tech stocks driven by concerns surrounding artificial intelligence, the Financial Times reported on Friday, citing people familiar with the matter.
According to the report, the developer of ChatGPT is now seeking approximately $20 billion in funding, with its expected valuation adjusted from $1.4 trillion to $1.25 trillion.

OpenAI has set a Friday deadline for investors to commit to participating in this funding round; however, the company added that the total for this “first round” is expected to be less than $20 billion, as some investors have reduced their investment amounts.

The newspaper added that a consortium of UAE-based investors—including MGX, a state-backed technology investment fund—is expected to be the largest participant in this funding round. As part of the deal, OpenAI would gain the option to lease newly developed computing capacity within the region.
The report states that venture capital firms, including Founders Fund, Coatue, Sequoia Capital, and Andreessen Horowitz, are also expected to participate.
The Financial Times further noted that wealthy individuals may have the opportunity to invest in a subsequent retail offering, which would value the company at $1.25 trillion.
OpenAI, MGX, Coatue, Sequoia Capital, and Andreessen Horowitz did not immediately respond to requests for comment from Reuters outside of standard business hours. Founders Fund could not be reached for comment.

U.S. tech stocks took a sharp hit amid growing market concerns over massive spending in the artificial intelligence sector. The tech-heavy Nasdaq index fell 2.9% on Friday, leaving it 7.8% below the record closing high it reached on October 6.
According to Reuters, OpenAI is aiming for an initial public offering (IPO) by 2027 and is eager to finalize its current funding round—in part to get ahead of a potential IPO by rival Anthropic, as both companies are courting a similar pool of investors.