AI Jitters Hit Private Markets: Will OpenAI's Smaller Raise Spook Investors?

OpenAI’s funding round is now targeting about $20 billion, down from $30 billion, after some investors reduced allocations ahead of an Oct. 30 deadline, and the first close is expected to fall below $20 billion. The round values OpenAI at $1.25 trillion, reduced from the $1.4 trillion first sought and lowered around Oct. 22 before the round size was cut. In March, OpenAI raised $122 billion at an $852 billion valuation. A UAE consortium including state-backed technology fund MGX is expected to be the largest participant, and OpenAI would gain an option to lease computing capacity in the region. Anthropic publicly filed for a Nasdaq listing on Oct. 26, and some investors reportedly want to see its IPO price first.