OpenAI slashes funding target by $10 billion amid tech rout, reports

OpenAI has reduced its latest fundraising goal by $10 billion as technology shares face a selloff linked to concerns about artificial-intelligence spending, according to a Financial Times report cited by Business Recorder. The company is now seeking about $20 billion, while its desired valuation is reported to have fallen to $1.25 trillion from $1.4 billion.

Investors were asked to commit by Friday, but the initial funding close is expected to bring in less than $20 billion after some participants cut their planned allocations. UAE investors, including state-backed fund MGX, are expected to lead the round, which could also give OpenAI access to lease computing capacity in the region. The report also names several venture capital firms as expected participants, while OpenAI is pursuing a 2027 listing amid competition for investors with Anthropic.