OpenAI has slashed its fundraising goal to roughly $20 billion from $30 billion, the Financial Times reported late Friday. The company also lowered its target valuation to $1.25 trillion from $1.4 trillion, a reduction of $150 billion.
Some investors reduced their planned commitments amid a broader AI selloff, and the first closing is expected to bring in less than $20 billion. Friday was the deadline for investors to confirm participation, with a later offering potentially filling the gap.
The news landed as U.S. tech stocks fell sharply. The Nasdaq Composite dropped 2.9% on Friday to close at 25,437, leaving it 7.8% below its October 6 record close. The Nasdaq 100 fell 4.5% on Friday and is down about 10% over three weeks, as investors question whether heavy AI infrastructure spending will pay off.
Competition for institutional capital is intensifying. Rival Anthropic is reportedly aiming to raise as much as $100 billion at a $1.5 trillion valuation, with a public listing expected in mid-November. OpenAI has already delayed its own public listing to 2027.
Elsewhere, Cathie Wood’s ARK funds were active in crypto-linked equities. ARK bought 39,418 shares of Coinbase Global for about $6.3 million despite a 10.62% drop in the stock, and purchased 74,894 shares of Circle Internet Group for about $6 million. ARK sold 238,373 shares of Bullish for about $6.8 million as that stock fell 16.05%. ARK also bought Tempus AI, Pacific Biosciences and Robinhood shares, sold Eli Lilly, and its flagship ARKK fund fell 6.07% on Friday.
