OpenAI Trims Latest Funding Round Target to $20 Billion

OpenAI CEO Sam Altman, shown speaking at Oracle AI World in Las Vegas on Oct. 27, 2026, is seeking up to $20 billion in a new funding round, CNBC confirmed on Saturday, down from an earlier target of up to $30 billion. The round remains open and the figures could change, a person directly familiar with the deal told CNBC, speaking on condition of anonymity because they were not authorized to discuss the matter publicly. OpenAI did not immediately respond to a request for comment. The Financial Times first reported that OpenAI cut the round target by $10 billion and would seek a $1.25 trillion post-money valuation. FT said the ChatGPT developer set a Friday deadline for investor commitments, with some investors choosing to reduce allocations. Investors from the United Arab Emirates are leading the round alongside Coatue, as CNBC previously reported. The reduced target comes after a week in which investors questioned whether heavy AI spending by big technology companies, particularly for data centers and GPUs, will generate adequate returns. AI-linked stocks fell on Friday: Intel dropped 25% on weak revenue guidance, Micron lost 5.5% and Nvidia fell 4%. Microsoft, Google parent Alphabet and Amazon have ramped up spending in recent years to meet surging demand for AI infrastructure, but all three reported capital expenditure figures or forecasts last week below analyst estimates. Alphabet had its worst trading day ever on Thursday after search revenue missed expectations. Chief business officer Philipp Schindler said the search impact was partly due to lower monetization within its AI Mode.