OpenAI has trimmed its latest private funding target by roughly $100 billion to about $200 billion at a $1.25 trillion valuation, as an AI-stock selloff and the looming IPO of rival Anthropic tighten the fundraising climate for frontier labs.
The funding reset
According to multiple people familiar with the matter cited by Cailian Press and Tonghuashun, OpenAI had planned as recently as last month to raise $300 billion at a $1.4 trillion valuation, marketing the round as the last chance for investors to enter before a 2027 IPO. That plan has now been revised downward: the company is seeking roughly $200 billion at a $1.25 trillion valuation. Several investors have already reduced their committed amounts, and the first close is expected to land below the $200 billion headline. The downshift reflects growing investor unease about the scale and pace of AI capital expenditure after a brutal week for technology equities.
Market backdrop
The Nasdaq Composite fell nearly 3% on Friday, its first three-week losing streak since March, with the Nasdaq 100 dropping about 3.5%. The selloff was broad-based across AI names and underscored mounting concern that the industry's infrastructure spending may outrun near-term returns. MGX, the UAE state-backed investment vehicle, is expected to be the largest participant in the round, alongside SoftBank, Sequoia Capital, Coatue Management, Founders Fund and Andreessen Horowitz. As part of the package, OpenAI would gain an option to lease newly built compute capacity in the region.
Anthropic races to market
Anthropic publicly filed its S-1 registration statement with the U.S. Securities and Exchange Commission on 26 October 2026, following a confidential submission in June. It intends to list on the Nasdaq Global Select Market under the ticker ANT, potentially beginning formal IPO marketing during the week of 9 November and pricing as soon as mid-November. Reported IPO valuation targets have come down to around $1.5 trillion from an earlier ~$2 trillion expectation. In its May 2026 Series H round, Anthropic raised $65 billion at a $965 billion post-money valuation.
Why it matters
The two events are linked: the same institutional investors OpenAI is courting are also anchors for Anthropic's public debut, so Anthropic's listing is siphoning demand from OpenAI's private round. Blackstone, which recently participated in a $63 billion AI compute financing, has told investors it expects Anthropic to receive a BB-range credit rating after the IPO, a high speculative-grade notch that signals the market still questions the path to durable profitability for frontier labs. The episode is a clear marker that public and private markets are repricing AI euphoria.
Key Facts
OpenAI new target: ~$200B raise at $1.25T valuation (was $300B at $1.4T).
Nasdaq Composite -3% Friday; first three-week losing streak since March.
Anthropic S-1 filed 26 Oct 2026; ticker ANT; IPO possible mid-November.
Anthropic IPO valuation discussed near $1.5T (down from ~$2T).
Series H (May 2026): $65B raised at $965B post-money.
Expected OpenAI round participants: MGX, SoftBank, Sequoia, Coatue, Founders Fund, a16z.
Blackstone expects Anthropic post-IPO rating in BB range (speculative grade).
Sources: Cailian Press, Tonghuashun Finance, AxIConnect; threerouter
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