OpenAI is reportedly finding it harder to secure the money it had hoped to raise from investors, with its latest fundraising plans running into resistance as concerns about the cost of artificial intelligence infrastructure weigh on technology markets.
The ChatGPT developer had initially explored raising around $30 billion (£22.7 billion), but the target has since been reduced to approximately $20 billion (£15.2 billion), according to reports citing people familiar with the discussions.
The Wall Street Journal has separately reported that OpenAI has secured roughly $11 billion (£8.3 billion) in commitments so far, less than half its original target. Some large investors have reportedly shown less enthusiasm than expected, while the company is looking to attract additional backing from family offices and wealthy individuals.
The change comes at a difficult time for the AI industry. Investors are reassessing the money being spent on computing infrastructure, while rival Anthropic is preparing for a possible public listing. OpenAI is therefore facing pressure to demonstrate that its business can justify the enormous sums being discussed.
OpenAI's Previous Funding Round Raised $122 Billion
The fundraising discussions initially appeared considerably more ambitious. In September, Bloomberg reported that OpenAI was seeking at least $30 billion (£22.7 billion) at a valuation of approximately $1.4 trillion (£1.06 trillion).
Reuters reported that the discussions were still at an early stage, with demand for the proposed round being led by investors rather than representing a completed financing agreement.
In March 2026, the company announced a funding round involving $122 billion (£92.4 billion) in commitments, valuing it at $852 billion (£645.5 billion).
That financing included backing from major technology and investment groups, including Amazon, Nvidia and SoftBank. Amazon's commitment was worth up to $50 billion (£37.9 billion), while Nvidia and SoftBank each committed $30 billion (£22.7 billion).
According to the Financial Times, as reported by Reuters, OpenAI's desired valuation has now fallen to approximately $1.25 trillion (£947 billion), down from the $1.4 trillion (£1.06 trillion) discussed earlier in the fundraising process.
The initial close was also expected to bring in less than the revised target, partly because some investors had reduced their allocations.
The United Arab Emirates is expected to play an important role in the financing. A consortium involving state-backed technology investment fund MGX is reportedly expected to become the largest participant. The arrangement could also give OpenAI an option to lease additional computing capacity being developed in the region.
Anthropic Competition and AI Infrastructure Costs Put Pressure on OpenAI
OpenAI's fundraising difficulties are unfolding alongside growing competition from Anthropic, the company behind Claude. Both businesses are seeking substantial investment, but their financial performance has become an important consideration for potential backers.
A Wall Street Journal report published in August revealed that OpenAI's revenue increased from $5.7 billion (£4.3 billion) in the first quarter to $6.7 billion (£5.1 billion) in the second quarter of 2026. This represented growth of approximately 18%.
Anthropic, meanwhile, more than doubled its quarterly revenue to $11.6 billion (£8.8 billion) during the same period, according to people familiar with its financial results. The company also recorded a small adjusted operating profit, although its calculation excluded stock-based compensation.
OpenAI's operating loss, meanwhile, widened from $9.3 billion (£7 billion) in the first quarter to $12.3 billion (£9.3 billion) in the second.
The comparison has attracted attention because Anthropic has gained enterprise customers through products such as Claude Code, its AI coding tool. However, revenue figures alone do not establish which business has a more sustainable model, particularly when their accounting methods and infrastructure commitments differ.
Developing and operating advanced AI systems requires substantial computing resources, including data centres, specialised chips and electricity. These commitments create ongoing costs even as companies work to attract more paying customers.
Reuters reported in October that OpenAI was seeking to accelerate its fundraising before Anthropic's anticipated public debut.
The company had told investors its September annualised revenue was almost $50 billion (£37.9 billion), while a separate investor presentation indicated expectations that the figure could reach $70 billion (£53 billion) by the end of the year.
These are annualised revenue figures and projections, not reported full-year earnings. The difference between earlier figures also reflects differing approaches to accounting for sales made through cloud partners, including Amazon Web Services and Google Cloud.
The technology sell-off has also highlighted growing investor scrutiny of businesses relying on heavy borrowing and continued infrastructure spending to support their expansion. The technology-heavy Nasdaq fell 2.9% on 30 October, leaving it 7.8% below its record closing high reached on 6 October.
Concerns have extended to the companies supplying the infrastructure behind the AI boom. Cloud computing provider CoreWeave also came under pressure as investors scrutinised its debt-funded expansion.
Reuters reported that the company had accumulated approximately $50 billion (£37.9 billion) in debt, highlighting the financial risks associated with the rapid expansion of AI infrastructure.
OpenAI is reportedly pursuing a potential stock market listing in 2027. Securing additional private investment beforehand could give the company more financial flexibility as it continues to expand its products and computing capacity.
However, the fundraising situation does not mean investors have abandoned OpenAI. The participation expected from established backers and the possibility of additional investment from wealthy individuals suggest that capital remains available, even if securing it on the company's preferred terms has become more difficult.
For now, the financing discussions offer an indication of how investor expectations around AI companies are changing. Revenue growth remains important, but investors are also examining operating losses, infrastructure commitments and the amount of capital required before these businesses can generate sustainable returns.
