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TL;DR
The Financial Times and CNBC reported that OpenAI reduced its fundraising target from as much as $30 billion to about $20 billion, while the Wall Street Journal separately reported that it had secured about $11 billion so far. OpenAI has not commented, and the round remains open; meanwhile, S&P affirmed Meta’s AA- credit rating but gave it a negative outlook amid heavy AI investment.
OpenAI has reportedly cut its fundraising target from as much as $30 billion to about $20 billion, while S&P Global Ratings changed Meta’s outlook to negative over its AI spending. The developments, reported on October 30, do not establish that capital for AI companies is drying up: OpenAI’s financing round is still in progress, and the two companies’ positions are different. They do point to closer scrutiny of how much companies spend and how investors expect that spending to pay off.
The Financial Times reported that OpenAI reduced its target by $10 billion to about $20 billion. CNBC said it independently confirmed the $20 billion figure with a person familiar with the deal, who said the round was still underway and its terms could change. Both outlets reported a valuation of about $1.25 trillion, below the $1.4 trillion figure initially floated. OpenAI has not publicly commented on the round.
The Wall Street Journal separately reported that OpenAI had secured about $11 billion so far after what it described as a “tepid” response from some large investors. That figure has not been independently confirmed by another outlet in the supplied reporting. The Financial Times also reported that the first close could bring in less than $20 billion, with a later offering to wealthy individuals potentially filling some of the gap.
S&P affirmed Meta’s AA- credit rating but lowered its outlook from stable to negative, citing the company’s AI investment. Meta’s third-quarter free cash flow was negative $2.1 billion, compared with positive $10.6 billion in the same quarter a year earlier. The company has forecast capital spending of $135 billion to $145 billion this year, according to the source material.
Infographic 01 · Confirmed or only reported
What we know about OpenAI’s shrinking round
Every number in this story comes from reporting, not from OpenAI. Here is which claim rests on how many sources.
- Target cut by $10B to about $20BTwo outlets
FT, citing people with knowledge of the matter; CNBC confirmed the figure with its own source. Round still open.
- Valuation $1.25T, down from $1.4TTwo outlets
FT and CNBC. Before or after the new money? The two CNBC reports differ.
- Friday deadline, first close below $20BOne outlet
FT. A later offering to wealthy individuals could fill the gap.
- UAE group with MGX expected to lead, option to lease computing capacityOne outlet
FT. CNBC had reported UAE investors and Coatue as leads on 22 Oct.
- About $11B secured, “tepid” response from some big investorsOne outlet
Wall Street Journal. Repeated by others, confirmed by none.
- OpenAINo comment
No reply to Reuters, CNBC or TechCrunch. No statement on its website.
How the round shrank
- 31 Mar 2026$122B closed at an $852B valuationOpenAI’s own announcement
- 22 Oct 2026Up to $30B at $1.25T, before new moneyCNBC, people familiar with the deal
- 30 Oct 2026Target cut to about $20BFT, relayed by Reuters
- 30 Oct 2026About $11B collected so farWall Street Journal
- 31 Oct 2026$20B confirmed, round not closedCNBC
“Two outlets” means two news organizations reported it with their own sources. None of this is confirmed by OpenAI.
Sources: FT via Reuters, 30 Oct 2026, CNBC, 31 Oct 2026, CNBC, 22 Oct 2026, WSJ as reported by Investing.com, 31 Oct 2026, OpenAI, 31 Mar 2026.
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Investors Are Watching AI Returns
The reports matter because leading AI companies require substantial funding for computing capacity, data centers and model development. A lower fundraising target, if confirmed, could indicate that investors are weighing the scale and timing of those costs more closely. It does not, by itself, show that OpenAI cannot raise capital or that AI investment has stopped.
For companies that rely on AI services, the practical concern is less an immediate shutdown than possible changes in prices, usage limits or contract terms if providers face pressure to control costs. That is a risk, not a reported change to any specific service. Buyers may want to review renewal terms and retain alternatives for important workflows.
Meta’s outlook change gives a separate signal about the financial scrutiny facing large AI spenders. S&P kept the rating at AA-, so the action was a warning about the direction of risk, not a downgrade of Meta’s credit rating. The agency’s concern is whether the company can turn its spending into revenue at a pace that supports its financial position.
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OpenAI’s Funding Needs and Meta’s Spending
OpenAI said in a March announcement that it had closed $122 billion in committed capital at a post-money valuation of $852 billion. It also said it had expanded an undrawn credit line to about $4.7 billion. Those figures show the scale of its previous financing, but they do not establish the terms or final amount of the current round.
The company’s reported new capital needs come amid large projected computing expenses. CNBC reported that OpenAI told investors in February it was targeting about $600 billion in total computing spend by 2030. CNBC has described the latest fundraising as an opportunistic bridge ahead of a possible public listing; that characterization and any listing timetable remain reported plans, not a completed event.
According to the Financial Times, investors from the United Arab Emirates, including state-backed fund MGX, are expected to be a major part of the round. The outlet also reported that OpenAI could have an option to lease computing capacity in the region. Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz were among the investors the FT said were expected to participate. These reported plans have not been confirmed by OpenAI.
“Meta “respectfully” disagrees.”
— Meta
The Round’s Final Terms Remain Open
OpenAI has not announced the target, amount raised, valuation or investor list for this round. The $20 billion target is supported by reporting from the Financial Times and CNBC, but the $11 billion secured-so-far figure comes from the Wall Street Journal alone in the source material. Neither number should be treated as a finalized close.
The valuation reports also differ on whether $1.25 trillion refers to a value before or after the new investment. The source material says CNBC earlier described it as pre-money, while a later account attributed a post-money description to the Financial Times. Without clarification from the company or investors, it is not possible to determine whether the reported terms represent a further decline in the price per share.
It is also unclear how much of the reported funding would come from each investor, whether the expected UAE computing arrangement will be agreed, and how Meta’s AI spending will affect its financial results over time. S&P’s outlook is an assessment of credit risk, not a guarantee of a downgrade.
Watch for a Funding Close
The next clear milestone is whether OpenAI announces a first close, and on what terms. The Financial Times reported that investors had been given a deadline to commit and that a later offering could be used to seek additional capital. Because the round remains in progress, the target, valuation and participation may still change.
Investors and customers will also be watching for further disclosures about OpenAI’s spending plans and any confirmed agreements for regional computing capacity. For Meta, future financial results and any subsequent action by S&P will show whether the agency’s concerns deepen. Until those developments are public, claims that AI funding is running out go beyond what the available reporting establishes.
Key Questions
Has OpenAI confirmed that it cut its fundraising target?
No public confirmation is reported. The Financial Times reported a target of about $20 billion, and CNBC said it confirmed that figure with a person familiar with the deal. OpenAI has not publicly commented, and the round is still in progress.
Has OpenAI raised $11 billion in the current round?
The Wall Street Journal reported that OpenAI had secured about $11 billion so far. The supplied reporting does not identify independent confirmation of that figure, so it should be treated as a reported amount, not a confirmed closing total.
Did S&P downgrade Meta?
No. S&P affirmed Meta’s AA- credit rating but changed its outlook from stable to negative, citing concerns related to the company’s AI investment.
Does this mean AI companies are running out of money?
The reports do not establish that. They suggest investors may be more selective about a major funding round, while Meta faces scrutiny over spending and returns. The eventual terms of OpenAI’s round and the financial results from AI investment remain uncertain.
Source: ThorstenMeyerAI.com
