🔍 Read the full analysis: Is Money Leaving AI, Or Moving Toward More Convincing Projects? on ThorstenMeyerAI.com
Get the latest gadgets delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
TL;DR
The Financial Times and CNBC reported that OpenAI lowered its fundraising target from as much as $30 billion to about $20 billion; the separate report that it has raised about $11 billion is not independently confirmed. S&P affirmed Meta’s AA- credit rating but changed its outlook to negative, citing AI spending and limited ability to monetize investments. Together, the developments suggest greater scrutiny of AI funding, not proof that capital has broadly stopped flowing.
OpenAI’s reported fundraising target has fallen from as much as $30 billion to about $20 billion, while S&P Global Ratings turned its outlook on Meta negative because of the company’s AI spending. The reports do not establish that investors are abandoning AI: the OpenAI round remains in progress, and the widely repeated figure of about $11 billion raised so far comes from one outlet and has not been independently confirmed.
The Financial Times reported on October 30 that OpenAI had reduced its target by $10 billion, to about $20 billion. CNBC said the next day that it had confirmed the revised target with a person familiar with the deal, who cautioned that the round was still underway and figures could change. Reuters relayed the FT report but did not independently confirm it. OpenAI had not publicly commented as of October 31.
The FT and CNBC also reported a $1.25 trillion valuation, below the $1.4 trillion figure previously floated. The reports differ on whether $1.25 trillion refers to the valuation before or after the new funding. Any further decline in the price per share is an interpretation of those accounts, not a confirmed deal term. The FT reported that an investor deadline had passed and that an initial close could bring in less than $20 billion, with a later offering potentially filling the gap.
The Wall Street Journal separately reported about $11 billion raised so far and described some large investors’ response as “tepid.” Other outlets repeating that number cited the Journal; the source material identifies no independent confirmation. The FT reported that a UAE investor consortium including state-backed MGX is expected to be a major participant, potentially alongside Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz. It also reported that OpenAI could have an option to lease computing capacity in the region.
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.
Powered by Thorsten Meyer AI
Investors Are Testing AI Spending
For AI companies, the distinction is between continued access to capital and access on the terms they want. A lower target or valuation can signal that investors are weighing expected returns, computing costs and risk more closely. It does not, by itself, show that funding has dried up or that the company cannot raise a large sum.
Meta’s credit outlook illustrates a related concern from lenders and rating analysts: how quickly AI investment can generate returns. S&P affirmed Meta’s AA- rating, so the change was a warning about the direction of risk, not a downgrade. For businesses buying AI services, these developments are a reason to watch provider finances, pricing and contract conditions. They do not establish that services are about to stop.
Products Worth Considering
Samsung Galaxy Tab S10 FE 128GB Wi-Fi Android Tablet, Blue
Apple Watch Series 12 GPS Smartwatch, 46mm
Amazon Kindle Scribe Colorsoft 64GB (1st Generation)
As an affiliate, we earn on qualifying purchases.
Large Rounds Meet Large Compute Bills
OpenAI said on March 31 that it had closed $122 billion in committed capital at an $852 billion post-money valuation. The company also said it had expanded an undrawn credit line to about $4.7 billion. Those figures provide scale, but they are not directly comparable to the current round: the earlier amount was committed capital, and the valuation and deal terms differ.
OpenAI’s need for additional funding is tied in part to the cost of computing. CNBC reported in October that the company had told investors it was targeting roughly $600 billion in total computing spend by 2030. CNBC also described the fundraising as an “opportunistic” bridge ahead of a possible public listing. Separately, CNBC reported that OpenAI’s finance chief told employees in August the company would be public in 2027. These are reported plans, not guarantees of spending or a listing.
Meta’s financial figures show why its spending is attracting attention. Its free cash flow was negative $2.1 billion in the third quarter, compared with positive $10.6 billion in the same quarter a year earlier, while the company forecast capital spending of $135 billion to $145 billion for the year. S&P cited concerns about the pace of spending and Meta’s ability to monetize AI investments.
Final Round Size Remains Unknown
OpenAI’s final fundraising total is not known. The round has not closed, and CNBC’s source said the figures could change. The reported $11 billion figure has not been independently confirmed in the accounts cited here, while OpenAI has not publicly commented.
It is also unclear whether the reported $1.25 trillion valuation is before or after the new funding, how much investors have committed, and whether the reported UAE computing arrangement will be agreed. The available reports do not show whether the fundraising developments reflect a broader change in AI investment across the industry. S&P’s outlook change concerns Meta specifically and is not a rating action against AI companies as a whole.
Watch for Closing Terms and Guidance
The clearest next milestone is an update on OpenAI’s first close, including the amount raised, final valuation and participating investors. Any announcement from the company or additional reporting that independently verifies the $11 billion figure could clarify how far the round has progressed.
For Meta, investors and customers will be watching subsequent financial results, capital-spending guidance and evidence of revenue from AI products. Until those details emerge, the reported fundraising change and S&P outlook are signals of closer scrutiny—not confirmation that money is leaving AI or that services are at risk.
Key Questions
Has OpenAI raised $11 billion in the current round?
The Wall Street Journal reported about $11 billion raised so far. The source material identifies no independent confirmation, and OpenAI had not commented publicly as of October 31, 2026.
What is OpenAI’s reported fundraising target now?
The Financial Times reported a target of about $20 billion, down from as much as $30 billion. CNBC said it confirmed the revised figure with a source familiar with the deal, who noted the round was still in progress.
Did S&P downgrade Meta?
No. S&P affirmed Meta’s AA- rating but changed its outlook from stable to negative, citing spending and questions about monetizing AI investment.
Do these reports show that AI funding is drying up?
No. They point to questions about fundraising terms, spending and expected returns, but do not establish a broad retreat in AI investment. OpenAI’s round is ongoing, and the reports concern specific companies and financing developments.
Source: ThorstenMeyerAI.com
