Funding
OpenAI Reduces Funding Goal to $30 Billion
OpenAI, the creators of the ChatGPT language model, has reduced its funding goal from $1.4 trillion to $1.25 trillion pre-money valuation. The company is now seeking up to $30 billion to bridge the gap until its planned initial public offering (IPO) in early 2027. The reduction in valuation target follows disappointing demand from potential investors, including Morgan Stanley private-wealth clients and other prospective investors who felt the higher valuation was too high. OpenAI is working to finalize the round by October 30, with potential lead investors including Coatue Management and funds from the United Arab Emirates. The new target represents a 50% increase over the company's previous valuation of $852 billion in March 2026.