OpenAI Cuts Funding Target to $20 Billion at $1.25 Trillion Valuation as UAE Investors Lead

OpenAI cut the target for its current funding round to approximately $20 billion, down from an initial goal of $30 billion, and reduced its implied valuation to $1.25 trillion from the $1.4 trillion it had discussed with investors earlier in October 2026, the Financial Times reported on October 30 — a story that continued to lead AI business coverage into the first week of November. The company had raised about $11 billion at that point, drawing tepid interest from some large institutional investors. UAE-backed investors are set to lead the revised round alongside Coatue, with the UAE participants pairing capital commitments with access to data-centre compute capacity in the Gulf. The adjusted deal is structured as bridge financing ahead of a planned initial public offering expected in 2027. OpenAI's valuation trajectory has been steep: it was valued at $500 billion in October 2025, then at $852 billion after a $122 billion raise in March 2026. The $150 billion haircut from $1.4 trillion to $1.25 trillion reflects growing investor scrutiny of frontier AI labs' enormous capital requirements relative to current revenues, even as OpenAI remains by far the highest-valued private AI company in the world.