OpenAI Cuts Fundraising and Valuation Targets as AI Stock Selloff Deepens

OpenAI has reportedly scaled back both its capital raise and its valuation goal as the sharp selloff in AI related stocks drags on. The company, which had already pushed its IPO plans back to 2027, was seeking to raise $30 billion at a $1.4 trillion valuation. It is now aiming for about $20 billion at a $1.25 trillion valuation, according to a Friday evening report.

Nasdaq 100 Slump and the AI Boom Anxiety

Worries about the AI boom have pulled the Nasdaq 100 down roughly 10% in just three weeks since its record high on October 6. Friday alone brought a 4.5% drop, which shows how quickly sentiment has turned. The fundraising change is not only about shaky stocks, though.

Competition From Anthropic for Capital

OpenAI is also competing for investor money with rival Anthropic, which plans to go public in November. Anthropic is reportedly aiming to raise as much as $100 billion at a $1.5 trillion valuation, a much bigger target than OpenAI’s revised plan.