OpenAI raises just $11 billion of its $30 billion target as big investors lose their AI appetite
OpenAI raises just $11 billion of its $30 billion target as big investors lose their AI appetite
OpenAI raised only about $11 billion in its latest funding round, far below its $30 billion target, and its valuation also failed to reach the $140 billion goal, reaching $125 billion. This reflects the weakening interest of major investors in AI amid a sell-off in tech stocks driven by weak quarterly performance from Google, Amazon, and Intel. OpenAI now plans to raise up to $20 billion from family offices and high-net-worth individuals and may go public earlier next year.
Oct 31, 2026
OpenAI raised less than half of its $30 billion fundraising target in its latest round. The company has secured about $11 billion so far, according to the Wall Street Journal. Its valuation landed at $1.25 trillion, short of the $1.4 trillion it was aiming for. The gap reportedly comes down to fading interest from major investors amid a tech sell-off driven by weak quarterly results from Google, Amazon, and Intel. OpenAI now plans to raise up to $20 billion from family offices and high-net-worth individuals. The company is reportedly planning an IPO early next year.
Rival Anthropic has been growing revenue faster lately and could go public as early as November. A strong IPO could leave Anthropic with well over $100 billion in capital to weather any rough stretch ahead. OpenAI has clawed back some market share recently, but the competition goes back and forth. OpenAI especially has been pushing hard with price cuts and more efficient models to hold its ground.
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Source: The Decoder · the-decoder.com