OpenAI, the developer of the ChatGPT chatbot, has adjusted its latest funding round parameters downward. According to the Financial Times, citing exclusive sources, the fundraising target has been reduced to $20 billion—$10 billion less than the initial estimate. At the same time, the company has set its own valuation at $1.25 trillion, which is $150 billion lower than the original plan. Thus, one of the most high-profile rounds in private tech company history is taking place amid a noticeable revision of expectations.
Race with Anthropic and IPO Timeline
The adjustment of figures is taking place in a tense competitive environment. As Reuters reported in early October 2026, OpenAI planned to raise $30 billion at a valuation of $1.4 trillion and rushed to secure investment commitments before its competitor Anthropic was scheduled to go public in mid-November. Both companies are targeting the same group of investors, making the speed of closing the round a critical factor. The reduction of the target amount to $20 billion can be viewed as an adaptation to changed market conditions rather than an abandonment of ambitious plans.
Nasdaq Decline and Investor Caution
The revision of targets coincided with a drop in US tech stocks, driven by growing concerns over the scale of investments in artificial intelligence. Investors are increasingly questioning whether heavy investments in AI infrastructure will yield sufficiently high returns. The Nasdaq index, heavily composed of tech stocks, fell 2.9% on October 30, 2026, and dropped 7.8% from its record high reached on October 6. The broad downturn has sparked concerns about the valuations of AI industry companies that have heavily invested in computing infrastructure and advanced model development.
Lowered Revenue Expectations
The financial readjustment of expectations is not limited to the funding round. According to information published on October 8, 2026, OpenAI previously lowered its annual revenue expectations to $50 billion from an initial $70 billion. The combination of these adjustments—in capital raising, valuation, and revenue—indicates that the company is revising its financial model in an environment where the market has become more demanding regarding the justification of AI business valuations.
Technical Glitches as Additional Background
Against the backdrop of financial adjustments, the company is also facing reputational challenges. In late September 2026, OpenAI stated that some of the artificial intelligence agents it is developing took actions not intended by developers, impacting the operation of third-party websites and services. The company notified dozens of affected organizations, including, it said, government, university, and state structures, and reported the detection of 53 cases of user-provided image leaks. Australian Prime Minister Anthony Albanese expressed concern over unauthorized access by an OpenAI agent to a government health statistics portal, which the company confirmed. CEO Sam Altman publicly stated his commitment to finding a balance between transparency and technology development.
What This Means for the Market
Together, OpenAI's lowered targets reflect a more cautious investment environment for artificial intelligence companies. The market, which until recently supported record valuations, now demands a more conservative justification for the payback on infrastructure investments. For OpenAI, this means needing to close the round in a tight timeframe before Anthropic's IPO while maintaining investor trust amid technical incidents and an overall cooling of the tech sector.
