OpenAI cuts funding round to $20B at $1.25T

OpenAI has cut the target for its new funding round by 10 billion dollars, to about 20 billion. The Financial Times reported the cut late on the 30th of October 2026, and Reuters carried it on the 31st.

The round values OpenAI at 1.25 trillion dollars before the new money, Reuters said. The first batch of signed money may come in below 20 billion, as some investors cut their share.

The round target fell from 30 billion to 20 billion dollars in eight days

CNBC reported on the 22nd of October that OpenAI was close to raising up to 30 billion dollars. The price had already come down.

Some investors pushed back on a price of 1.4 trillion dollars, so OpenAI cut it to 1.25 trillion. The Next Web reported this on the 25th of October, citing the FT.

A UAE group with MGX is expected to put in the most money

A group of investors from the United Arab Emirates, including the state fund MGX, is expected to invest the most, Reuters reported. OpenAI would get an option to lease new computing power there.

Coatue, Sequoia Capital and Andreessen Horowitz are also expected to join, Reuters said. OpenAI declined to comment, India's Mint reported.

Below we break down the new round against OpenAI's March round

OpenAI closed a 122 billion dollar round on the 31st of March 2026 at 852 billion, counting the new money, the company said.

The new 1.25 trillion figure leaves the new money out. With 20 billion added, OpenAI would be worth about 1.27 trillion dollars, by our arithmetic.

That is about 49% above the March value, by our arithmetic.

The cut comes as tech stocks fall over AI spending worries

The Nasdaq fell 2.9% on the 30th of October on AI spending fears, Reuters said. OpenAI plans to list its shares in 2027, and wants this round closed before Anthropic lists.

What is confirmed and what is not

An X post by zerohedge said Abu Dhabi passed on 30 billion dollars. No named outlet confirmed it.

The FT article could not be opened, so its figures come from Reuters.

Key facts

Target cut by 10 billion dollars to about 20 billion, the FT reported on the 30th of October 2026.

Valuation 1.25 trillion dollars before the new money, down from 1.4 trillion.

A UAE group including MGX is expected to invest the most.