The company is seeking to raise the funding at a valuation of $1.25 trillion, down from the previous $1.4 trillion, according to the report.
The Wall Street Journal reported Friday, citing unnamed sources, that OpenAI had secured about $11 billion in commitments for the new funding, less than half of its initial target of $30 billion. The report said the deal valued OpenAI at $1.25 trillion.
Now, OpenAI plans to raise more money from family offices and high-net-worth individuals over the coming weeks to bring the total to $20 billion, according to the report.
OpenAI did not immediately reply to PYMNTS’ request for comment on the reports.
OpenAI’s $10 billion cut in its target for funding came as the tech-heavy Nasdaq 100 fell 3.5% on Friday due to a selloff of AI-related shares, and as the company competes for attentions with rival AI company Anthropic, which is readying the launch of its initial public offering, according to the FT report.
OpenAI had received “tepid interest” from some large investors and was seeing investor appetite dampened by “market jitters” about the AI industry, according to the WSJ report.
It was reported Friday morning that the Nasdaq had fallen 3% after having already lost more than $1.2 trillion in market capitalization since the beginning of October. The decline was driven by traders’ concerns about whether companies’ AI investments will pay off.
A day earlier, on Thursday (Oct. 29), it was reported that Google parent company Alphabet saw its stock drop 13%, and its market value lose $500 billion, after the company released quarterly results Wednesday (Oct. 28) that stoked investors’ fears about how the company is being impacted by the rise of AI.
When Anthropic filed for a proposed initial public offering Monday (Oct. 26), the filing showed $16.3 billion six-month revenue and an $80.7 billion net loss. The revenue figures was up 1,300% from the same period in 2025.
It was reported Oct. 22 that OpenAI positioned its current funding round as an “opportunistic” bridge before its own potential IPO.
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