OpenAI scales back its funding round to as much as $20 billion from $30 billion as an AI stock selloff hits chipmakers

The San Francisco company has cut the target for its latest round by a third, at a $1.25 trillion post-money valuation, according to CNBC. The Wall Street Journal reported about $11 billion committed so far. The news came on a day when Intel fell 25%.

November 1, 2026

Top image: OpenAI CEO Sam Altman. Photo: TechCrunch / CC BY 2.0 via Wikimedia Commons

By Renata Solvik, Enterprise & Private Equity Reporter

OpenAI has lowered the target for its latest private funding round to as much as $20 billion, down from $30 billion, CNBC reported on Saturday, Oct. 31, citing a report first published by the Financial Times. The round values the company at $1.25 trillion after the new money, and investors faced a Friday deadline to commit, CNBC reported.

About $11 billion had been committed, The Wall Street Journal reported, according to a summary by Investing.com. Investors from the United Arab Emirates are leading the round with Coatue, and the round remains open, according to the reports. OpenAI did not comment.

1515 Third Street in San Francisco’s Mission Bay, which housed OpenAI’s headquarters when this photo was taken in June 2025. Photo: Coolcaesar / CC BY 4.0 via Wikimedia Commons

A rough day for AI stocks

The reports came as AI-related stocks sold off on Friday, Oct. 30. Intel fell 25%, Micron 5.5% and Nvidia 4%, CNBC reported. Two days earlier, Alphabet’s shares had their worst day on record after it raised its spending outlook.

Intel’s headquarters in Santa Clara, photographed in 2023. Photo: Coolcaesar / CC BY-SA 4.0 via Wikimedia Commons

What it means

Raising $20 billion would still be one of the largest private financings on record. The cut does show investors being more careful about how much they will pay into the AI build-out at current valuations. OpenAI needs large amounts of capital for chips, data centers and cloud capacity, and it has been signing deals with several cloud providers, including bringing its models to Google Cloud.

For the Bay Area, where OpenAI and much of its supply chain are based, the result will show whether private investors keep paying for AI expansion while public markets are pulling back. Intel and Nvidia are both headquartered in Santa Clara.

Two days before Election Day, federal courts have set the rules for the Justice Department in California. Here is what they allow and what they bar

About one in four South Bay voters have already cast ballots. Here is where, when and how to vote before polls close Tuesday

Prop 45’s final weekend: two polls, two different answers, and a Bay Area that is the measure’s toughest crowd

Ro Khanna backs three ‘new generation’ challengers against fellow House Democrats, including Mike Thompson and Doris Matsui