OpenAI has lowered the pre-money valuation target for its latest funding round to $1.25 trillion from an earlier $1.4 trillion pitch, the Financial Times reported, after some investors pushed back on the higher price. The ChatGPT maker is seeking up to $30 billion in a round led by Coatue and UAE-linked investors, ahead of a stock listing it is targeting for 2027.
OpenAI has trimmed the valuation target for its newest funding round to $1.25 trillion, down from a $1.4 trillion figure it had presented to investors weeks earlier, according to a Financial Times report cited by market-data provider Newsquawk and technology outlet TechCrunch. The company is working to close a round of up to $30 billion, people familiar with the talks said.
What changed
The $1.4 trillion pre-money figure had circulated since late September 2026, when Bloomberg first reported OpenAI was working on raising $30 billion at that valuation, according to TechCrunch. By October 22, the target had been cut to $1.25 trillion, a reduction of roughly $150 billion, as anchor investors resisted the higher price, Newsquawk's analysis of the FT report said.
TechCrunch and Newsquawk both reported that the round is now being led by investment firm Coatue alongside UAE-based investors, with some reporting suggesting the UAE participation could be tied to a separate computing-capacity arrangement with OpenAI. OpenAI declined to comment on the fundraising, according to TechCrunch.
Why the rush — Anthropic's IPO
The fundraising push is moving unusually fast, according to a Reuters report published October 19-20, 2026 and carried by BNN Bloomberg. Sources told Reuters that OpenAI is racing to lock in investor commitments before rival Anthropic's expected public listing in mid-November 2026, since the two companies increasingly draw on the same pool of investors. SoftBank Group and MGX were among existing OpenAI backers in talks to join the round at the time of that report.
OpenAI could want to set its own valuation and not have to worry about a comp.
— Edward Best, co-chair of capital markets at Willkie Farr & Gallagher, quoted by Reuters
Revenue and spending backdrop
Reuters' sources said OpenAI is pitching investors on annualized revenue of about $50 billion, with an internal target of $70 billion by the end of 2026, helped by the launch of new models. A separate account cited by Startup Fortune put the company's full prior-year revenue at $13 billion, with a stated goal of roughly tripling annual sales.
Startup Fortune's review of the FT reporting linked the lower valuation ask partly to a rougher week for technology stocks — the Nasdaq fell 2.1% — and to investor questions about whether large cloud and AI companies can keep borrowing to fund infrastructure as bond yields rise. OpenAI has previously outlined plans for roughly $600 billion in total compute spending by 2030, a figure referenced in that reporting alongside estimates that the five largest U.S. tech companies will together spend close to $700 billion on AI infrastructure in 2026.
OpenAI's valuation targets over 2026
Report / round
Valuation figure
Basis
March 2026 funding round
$852 billion
Post-money, per TechCrunch
Late September 2026 pitch
$1.4 trillion
Pre-money target reported by Bloomberg, cited by TechCrunch
October 22, 2026 target
$1.25 trillion
Pre-money target reported by the Financial Times, cited by Newsquawk and TechCrunch
Background and what remains unknown
OpenAI filed confidential paperwork for an initial public offering in June 2026, per TechCrunch, and is currently aiming for a stock listing in 2027. Should the new round close at or above $1.25 trillion, OpenAI would set a record for the highest valuation ever reached by a private company, according to TechCrunch's reporting.
Newsquawk's analysis cautioned that a trimmed target in a late-stage private round is common when a company tests a price, anchor investors push back, and the round is repriced to get the deal done — meaning the $1.25 trillion figure is not final until the round actually closes. Reuters' sources said the fast timetable also reflects a desire among some investors to commit capital to OpenAI before deciding how much to allocate to Anthropic's listing.
Questions
What is OpenAI's new valuation target?
OpenAI is now targeting a $1.25 trillion pre-money valuation for its current funding round, down from an earlier $1.4 trillion target, according to the Financial Times as reported by Newsquawk and TechCrunch on October 22, 2026.
How much money is OpenAI trying to raise?
Up to $30 billion, according to Reuters (via BNN Bloomberg) and TechCrunch.
Who is leading the round?
TechCrunch and Newsquawk reported the round is led by investment firm Coatue together with UAE-linked investors; earlier reporting by Bloomberg, cited by TechCrunch, had put the valuation pitch at $1.4 trillion a month earlier.
Why is OpenAI speeding up its fundraising now?
Reuters sources said OpenAI wants to secure investor commitments before Anthropic's expected public listing in mid-November 2026, since the two companies compete for the same investor base.
What revenue is OpenAI reporting to investors?
Reuters sources said OpenAI is citing about $50 billion in annualized revenue with a goal of reaching $70 billion by the end of 2026.
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