OpenAI Cuts Its Funding Round to $20 Billion at a Reported $1.25 Trillion Valuation as Anthropic's IPO Looms

OpenAI is now seeking up to $20 billion in its current funding round, about a third less than its earlier $30 billion goal, according to Tech Funding News on November 2, 2026. CNBC confirmed on October 31 that the company is seeking up to $20 billion and said the round is still open, so numbers could change. The Financial Times first reported the reduction and said OpenAI gave investors until October 30 to commit, with some choosing to reduce their allocations.

The Terms

• Target: up to $20 billion, down from $30 billion
• Valuation: $1.25 trillion according to the FT, down from the $1.4 trillion Bloomberg reported on September 29
• Commitments: about $11 billion so far, according to the Wall Street Journal
• First close: expected to bring in less than $20 billion, per Reuters citing the FT

Reports disagree on whether $1.25 trillion is a pre-money or post-money figure. CNBC called it pre-money on October 22 and post-money in its latest report citing the FT, which could mean a difference of up to $20 billion. The company has not commented to CNBC.

By our arithmetic, $1.25 trillion is about 10.7 percent below $1.4 trillion and about 47 percent above the $852 billion valuation from OpenAI's $122 billion round that closed on March 31.

Who Is Investing

CNBC reported that UAE investors and Coatue are leading the round, with a group that includes state-backed MGX expected to be the largest participant. Founders Fund, Sequoia Capital and Andreessen Horowitz are also expected to join. Wealthy individuals could invest later at the same valuation, which might bring the total to $20 billion.

The Revenue Backdrop

Bloomberg reported that OpenAI's annualised revenue was about $50 billion at the end of September and is expected to reach at least $70 billion by the end of 2026. At $1.25 trillion, the valuation is about 25 times the September run rate, by Tech Funding News's calculation. OpenAI said in February it aims to spend about $600 billion on compute by 2030.

The Anthropic Overlap

Several expected OpenAI investors also back its main rival. Tech Funding News reports that Coatue, MGX and Founders Fund led or co-led Anthropic's Series G in February, and that Sequoia helped lead its Series H in May. Anthropic filed its S-1 on October 26 for a Nasdaq listing under the ticker ANT, and reports suggest a debut as soon as mid-November. OpenAI filed confidentially for an IPO on June 8, per CNBC, and its prospectus has not been made public.

Harrison Rolfes, a senior late-stage research analyst at PitchBook, told Tech Funding News that OpenAI has a free option to see how institutions respond to Anthropic's audited financials before setting its own price, though that option is worth less if OpenAI is already far along in its own SEC review.

A Tough Week for AI Stocks

On October 30, Intel fell 25 percent after weak guidance and Nvidia lost 4 percent, according to CNBC. Microsoft, Alphabet and Amazon also reported capital spending below analyst expectations. That matters because the round is competing for the same pool of capital as public markets.

The Risk

The round is still open and terms could change. If investors value Anthropic at $1.5 trillion or more when it lists, OpenAI's $1.25 trillion would look attractive, but weak demand for either offering would signal limits on appetite. The overlap among investors also means their decisions are linked.

What This Means for Founders

First, round targets can shrink. OpenAI went from $30 billion to $20 billion in weeks, so set a minimum amount you can operate on and plan a first close, as OpenAI is doing, and let later money follow.

Second, valuation language matters. The same figure can be pre-money or post-money, and the difference changes dilution and what each investor owns. Confirm which one you are quoting in your term sheet.

Third, watch public comparables. A big listing can reset how private investors price companies in the same sector, so prepare your data room and be ready to explain your post-money valuation against listed peers.

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