TLDR
- OpenAI cut its fundraising goal to about $20 billion from $30 billion, the Financial Times reported.
- Its target valuation fell to $1.25 trillion from $1.4 trillion.
- The Nasdaq Composite fell 2.9% on Friday and is 7.8% below its October 6 record close.
- Rival Anthropic plans to go public in mid-November and is competing for the same investors.
- Cathie Wood’s ARK bought Coinbase Global, Circle Internet Group and Tempus AI, and sold Bullish and Eli Lilly.
OpenAI has lowered its fundraising goal, the Financial Times reported late Friday. The company now wants to raise about $20 billion, down from $30 billion.
OpenAI has cut its fundraising target to $20B from $30B and lowered its target valuation to $1.25T from $1.4T, per FT
Some investors reduced commitments amid the AI selloff
The initial close is expected to fall short of $20B, with a later offering potentially filling the gap pic.twitter.com/h2d92M7LK0
— Wall St Engine (@wallstengine) October 31, 2026
The new target values OpenAI at $1.25 trillion. It had earlier sought a valuation of $1.4 trillion, a cut of $150 billion.
Some investors have reduced their planned amounts, according to people familiar with the process. Friday was the deadline for investors to confirm they would take part.
The first closing is expected to bring in less than $20 billion. OpenAI did not immediately respond to a request for comment outside business hours.
Tech Stocks Fall Sharply
The news came as U.S. tech stocks dropped. The Nasdaq Composite fell 2.9% on Friday to close at 25,437.
The index is now 7.8% below its record close on October 6. The Nasdaq 100 fell 4.5% on Friday and is down about 10% in three weeks.
Investors are asking whether heavy spending on AI infrastructure will pay off. Many companies have committed large sums to computing power and advanced models.
OpenAI had already pushed back its plans for a public listing to 2027. Rival Anthropic plans to go public in November.
Competition for Investor Money
Anthropic is reportedly aiming to raise as much as $100 billion at a $1.5 trillion valuation. Its market debut is expected in mid-November.
OpenAI and Anthropic are competing for money from overlapping groups of institutional investors. OpenAI had hoped to lock in commitments before Anthropic lists.
Cathie Wood’s ARK funds also traded on Friday. ARK bought 39,418 shares of Coinbase Global for about $6.3 million, and the stock fell 10.62% that day.
ARK also bought 74,894 shares of Circle Internet Group for about $6 million. It sold 238,373 shares of Bullish for about $6.8 million, and Bullish fell 16.05%.
ARK bought 154,521 shares of Tempus AI for about $12 million. It also bought 480,274 shares of Pacific Biosciences and 13,757 shares of Robinhood Markets.
ARK sold 17,626 shares of Eli Lilly for about $24.2 million, and the stock rose 3.19%. It also sold 50,859 shares of CareDx for about $3.6 million.
ARK’s flagship ARKK fund fell 6.07% on Friday. OpenAI’s first closing is expected to bring in less than $20 billion, and Anthropic’s listing is scheduled for mid-November.
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