The ChatGPT maker is closing in on a smaller raise at a lower valuation than it pitched, as AI stocks wobble ahead of an expected 2027 IPO
OpenAI is nearing the finish line on a private funding round that values the company at approximately $1.25 trillion. That would be a staggering number for almost any business on Earth.
It is also less than OpenAI wanted. The company had floated a $1.4 trillion target with investors earlier in October 2026, and the market apparently had other ideas.
The raise got smaller, too
The valuation is not the only number that shrank. As of October 31, 2026, OpenAI had lined up about $11 billion in commitments.
The original goal was $30 billion. That ambition has since been trimmed to a more modest target of around $20 billion.
The round is being framed as bridge financing ahead of an initial public offering expected in 2027.
OpenAI’s business has kept growing in the meantime. Its revenue reportedly hit an annualized run rate of about $50 billion by late September 2026.
A valuation that climbed fast
OpenAI was valued at $500 billion in October 2025. Then came a March 2026 round that raised $122 billion at an $852 billion post-money valuation.
So even the reduced $1.25 trillion figure represents a substantial step up from where the company stood earlier this year.
The contrast with the March raise is hard to ignore, though. That round pulled in $122 billion, while the current one is struggling to reach a fraction of that. The downgrade from $30 billion to around $20 billion suggests appetite cooled along the way.
Why investors are getting cautious
AI-linked tech stocks have been under pressure, and the Nasdaq 100 fell 3.5% on one Friday as worries about AI spending spread.
OpenAI is also not the only giant heading toward public markets. Rival Anthropic is preparing for a public listing in November 2026, ahead of OpenAI’s expected 2027 timeline.
What this means
For OpenAI, the immediate takeaway is that its pricing power with investors has limits. A company that once seemed able to name its number is now adjusting both the size of its raise and the valuation attached to it.
A $1.25 trillion valuation and a revenue run rate of about $50 billion still describe one of the most valuable private companies in history.
The next markers to track are whether OpenAI reaches its roughly $20 billion goal, how Anthropic trades after its November debut, and whether AI stocks steady or slide further.
