---
title: "Report: OpenAI lowers funding target to $20 billion"
description: "Per the Financial Times, OpenAI cut its new round's target from $30 billion to $20 billion, a sign investors are growing wary of massive AI spending."
url: https://kurddevelopers.com/en/news/openai-lowers-funding-target-20b
language: en # English
type: report (unconfirmed: rumour, leak or analyst claim)
published: 2026-10-31T16:12:00.000Z
updated: 2026-11-02T07:55:22.000Z
author: "Osamah Ismail"
author_url: https://kurddevelopers.com/en/author/1
section: "AI"
tags: ["OpenAI","Funding","IPO","ChatGPT"]
sources: ["TechCrunch","Financial Times","Wall Street Journal"]
image: https://kurddevelopers.com/uploads/2026/11/oai-go-blog-opengraph-1200x630-8af4cd0a.png
translations:
  ku: https://kurddevelopers.com/news/openai-lowers-funding-target-20b
  ar: https://kurddevelopers.com/ar/news/openai-lowers-funding-target-20b
publisher: Kurd Developers
publisher_url: https://kurddevelopers.com/
---

# Report: OpenAI lowers funding target to $20 billion

> Per the Financial Times, OpenAI cut its new round's target from $30 billion to $20 billion, a sign investors are growing wary of massive AI spending.

_Report: this story is based on reports, leaks or analyst claims that are not officially confirmed._

![Image: OpenAI](https://kurddevelopers.com/uploads/2026/11/oai-go-blog-opengraph-1200x630-8af4cd0a.png)

**OpenAI**, the maker of **ChatGPT**, is at a delicate moment: ahead of its IPO, raising money is no longer as easy as it was.

## What happened
According to the **Financial Times**, OpenAI lowered the target for its new funding round from **$30 billion** to **$20 billion**, with a first close expected to be even lower.

## The numbers over time
| When | Target and valuation |
|---|---|
| September 2026 | $30B at a $1.4 trillion valuation |
| October 2026 | $30B at a $1.25 trillion valuation |
| End of October | $20B (FT) |

- Per the FT, a group of investors from the **UAE** will lead the round.
- A later offering for **wealthy individuals** could bring the total to $20 billion.
- The **Wall Street Journal** says OpenAI has secured **$11 billion** so far, with a "tepid" response from some large investors.

## The problem: why are investors hesitant?
1. **Huge spending**: AI companies pour billions into data centers and chips. Per the WSJ, OpenAI itself projects burning about **$85 billion** in 2028.
2. **Tech sell-off**: wary of AI infrastructure spending, Wall Street investors have pushed tech stocks down.
3. **Competition**: per Sensor Tower, ChatGPT's share of the AI assistant market fell below **50%** in May as Gemini and Claude grew.

For context, in March OpenAI raised **$122 billion** at an **$852 billion** valuation. Demand is still big, just not what it was.

## The response: what OpenAI is doing
- Leaning on **Gulf investors** (UAE) who are still investing heavily in AI.
- Opening the door to **wealthy individuals** through a private offering.
- Preparing for its **IPO**: OpenAI confidentially filed with the SEC in June.

## What it means for you
If AI companies raise less money, free tiers may shrink while **ads** and **subscriptions** grow. OpenAI is already testing ads in ChatGPT.

*This is a report from the FT and WSJ; OpenAI hasn't commented.

**Sources:** TechCrunch, Financial Times, Wall Street Journal

---

Published by [Kurd Developers](https://kurddevelopers.com/) on 2026-10-31. Cite as: “Report: OpenAI lowers funding target to $20 billion”, Kurd Developers, https://kurddevelopers.com/en/news/openai-lowers-funding-target-20b