OpenAI is confronting significant challenges in its latest funding round. After news emerged in late October that OpenAI had lowered its fundraising target by US$10 billion, a report this Friday indicated that multiple major investors have substantially reduced their contributions in this round, with SoftBank and other previously enthusiastic supporters now planning to invest only a few hundred million US dollars — a far cry from the tens of billions committed in past rounds.
According to a late October report, OpenAI cut its fundraising target for this round by at least one-third from the original US$30 billion, now seeking approximately US$20 billion, with its valuation also revised down from a peak of US$1.5 trillion to US$1.25 trillion. According to a Friday DealBook report, this OpenAI funding round is being conducted in two parts, with the first portion closing on Friday, November 6, and the actual amount raised expected to fall below US$20 billion.
Also on Friday, OpenAI Chief Financial Officer Sarah Friar said in an interview with CNBC at the Citi TMT Leadership Summit that despite many voters opposing data center construction in this week's midterm elections, OpenAI will continue to advance its data center infrastructure investments, and confirmed that the fundraising process is still underway. She stated that "a good CFO always raises when they can," and reiterated that the company is still considering a 2027 IPO.
The day before Friar's remarks, OpenAI had already signaled a shift in how it advances data center projects, releasing a "National Community Compact" framework that day, pledging that data center projects will not sign non-disclosure agreements and will not pass electricity costs on to residents. OpenAI Chief Global Affairs Officer Chris Lehane said some projects could face delays, and acknowledged that voters' ballots sent an important signal that businesses must listen to and respond to.
Major Investors' Willingness to Contribute Has Clearly Cooled
According to DealBook on Friday, citing people familiar with the matter, a consortium of Emirati investors (including state-backed technology fund MGX) is expected to be the largest contributor in this round, with a commitment in the single-digit billions of US dollars.
SoftBank's change in stance is particularly noteworthy. The Japanese conglomerate was previously one of OpenAI's most active supporters, having invested approximately US$65 billion in OpenAI to date, including US$30 billion in the US$122 billion funding round in March of this year and US$30 billion in the US$40 billion funding round in March 2025. However, according to people familiar with the matter, SoftBank is now only discussing an investment of a few hundred million US dollars.
Existing investor Coatue also plans to reduce its contribution. According to two people familiar with the matter who spoke to DealBook, Coatue is also discussing an investment in the range of a few hundred million US dollars. Notably, Coatue is also an investor in OpenAI competitor Anthropic.
Market Turmoil and Competitive Pressure Create Dual Headwinds
The resistance encountered in this funding round is closely tied to the recent sharp pullback in technology stocks. According to CNBC, the Nasdaq recorded its largest single-day decline in 19 months on Thursday, with chipmakers and emerging cloud computing companies most closely linked to AI infrastructure buildout leading the losses, before rebounding somewhat on Friday.
Investors' attitudes toward AI trades are becoming more cautious, driven by a combination of factors including rising borrowing costs, continuously climbing debt levels, and public backlash against the AI industry. According to a late October report, one OpenAI supporter said that at the start of fundraising, market enthusiasm for AI trades was high, but then encountered a sharp market reversal.
Meanwhile, competitor Anthropic's listing plans are also diverting investors' attention and capital. Anthropic plans to debut on the Nasdaq in mid-November, targeting a valuation of US$1.5 trillion or higher. Since both companies target similar investor bases, OpenAI had previously rushed to complete this funding round before Anthropic's listing. According to Anthropic's prospectus, the company's revenue grew approximately 1,200% year-over-year in the first nine months of this year, reaching US$33.2 billion.
CFO: Data Center Investment Will Not Stop, IPO Target Unchanged
Despite the tightening fundraising environment, Sarah Friar expressed a clear stance on the company's outlook in her CNBC interview.
She said the midterm election results will not fundamentally change the company's strategic direction — among 41 local ballot measures involving data centers, voters rejected the vast majority of proposals supporting data center construction, but Friar said, "If the midterms mean more focus on data centers and community relations, we will continue to go deeper into these communities and build trust."
Regarding the IPO process, Friar confirmed that OpenAI confidentially filed its prospectus with the US Securities and Exchange Commission in June of this year, and said the company will continue to advance its 2027 listing plans. She also emphasized that "demand for AI is real," and characterized this ongoing funding round as a necessary measure to meet customer demand and sustain infrastructure investment.
OpenAI said it expects this funding round to be completed within the coming weeks.
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