The Kobeissi Letter, a prominent markets commentary publication, reported on X today, October 31, 2026, that OpenAI has revised its fundraising goals. The post stated: "BREAKING: OpenAI has slashed its funding target by -$10 billion and its valuation by -$150 billion during this week's technology stock selloff. OpenAI is now seeking to raise $20 billion at a $1.25 trillion valuation, down from $30 billion at a $1.4 trillion valuation. The company set a deadline of today for investors to commit to the funding round. That "first close" is now expected to bring in less than $20 billion, after some of its investors lowered their allocations to the round. This comes just weeks before the expected Anthropic IPO."
This development comes as the broader technology sector experiences a downturn. Major tech stocks like NVDA and Apple are down 4.2% and 1.2% today, respectively. The Nasdaq index has fallen by 2.9% to $25,437. Recent Gokhshtein coverage included Arm Holdings Down 10% as Intel's Weak Guidance Shows Sector Trouble, indicating broader challenges for technology companies.
The reported reduction in OpenAI's funding target and valuation suggests potential investor caution or a reassessment of growth prospects within the artificial intelligence sector. This adjustment occurs just weeks before a competitor's initial public offering, which could indicate a more challenging fundraising environment for private AI firms or a recalibration of market expectations for the sector.
