🔍 Read the full analysis: Investing In AI Gets More Selective As Big Funding Goals Persist on ThorstenMeyerAI.com
Get smart everyday buys 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 funding target from as much as $30 billion to about $20 billion; the round remains open, and the separate report that it has raised about $11 billion is not independently confirmed in the supplied reporting. S&P affirmed Meta’s AA- credit rating but changed its outlook to negative, citing AI investment costs and questions about monetization. Together, the developments point to greater scrutiny of AI spending, not proof that funding has stopped.
OpenAI has lowered its fundraising target to about $20 billion from as much as $30 billion, according to reports by the Financial Times and CNBC, while S&P Global Ratings has shifted Meta’s credit outlook from stable to negative over its AI spending. The two developments show investors and credit analysts scrutinizing the cost and potential returns of AI more closely, but they do not establish that funding for the sector has dried up.
The Financial Times reported on October 30, citing people familiar with the matter, that OpenAI cut its target by $10 billion. CNBC said on October 31 that it confirmed the approximately $20 billion target with a person directly familiar with the deal. That source said the round is still in progress and its terms could change. OpenAI had not publicly commented on the fundraising as of the reporting described in the source material.
The reported valuation is about $1.25 trillion, down from the $1.4 trillion figure previously floated, according to the FT and CNBC. The accounts differ over whether $1.25 trillion is a pre-money or post-money valuation, so the precise basis—and whether it represents a further reduction in the price per share—remains unsettled. The FT also reported that a group of United Arab Emirates investors, including state-backed fund MGX, is expected to be a major participant, with an option for OpenAI to lease computing capacity in the region. Other investors named in that report include Founders Fund, Coatue, Sequoia Capital and Andreessen Horowitz.
A separate Wall Street Journal report put OpenAI’s fundraising so far at about $11 billion and described some large investors’ response as “tepid.” The supplied reporting does not include independent confirmation of that figure. Separately, S&P affirmed Meta’s AA- rating but revised its outlook to negative. Meta’s third-quarter free cash flow was minus $2.1 billion, compared with positive $10.6 billion a year earlier; the company had forecast full-year capital spending of $135 billion to $145 billion.
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
AI Spending Faces a Returns Test
The developments matter because building and running AI systems requires substantial investment in computing infrastructure, and companies raising or spending at this scale depend on continued access to capital. A lower fundraising target, if the reports are accurate, may reflect investors’ willingness to negotiate deal size, valuation or participation rather than an outright refusal to finance AI. The reported terms are not final, and the $11 billion figure has a narrower sourcing basis.
For Meta, S&P’s outlook change is a warning about the relationship between AI costs and future returns, not a downgrade of its credit rating. S&P said Meta’s ability to monetize its AI investments is more limited than that of some peers. Meta said it “respectfully” disagrees. For businesses that rely on AI services, the practical concern is not evidence of an imminent shutdown; it is the possibility that providers adjust prices, service limits or contract terms as infrastructure costs and financing conditions change.
Products Worth Considering
Apple MacBook Air 13-inch with M5 chip, 16GB memory, 1TB SSD, and 12MP Center Stage camera (Midnight)
Canon PIXMA TR160 Wireless Portable Color Inkjet Printer
HP OfficeJet 250 Wireless Mobile All-in-One Inkjet Printer
As an affiliate, we earn on qualifying purchases.
OpenAI’s Funding and Spending Plans
The current reports follow a much larger OpenAI financing announced earlier in the year. On March 31, OpenAI said it had closed $122 billion in committed capital at a post-money valuation of $852 billion. The company also said it had expanded an undrawn credit line to about $4.7 billion. Those company-reported figures provide scale, but they do not establish how much of the new round will close or on what terms.
The reason for another large financing effort is tied in part to computing demand. CNBC reported in October that OpenAI told investors in February it was targeting roughly $600 billion in total computing spend by 2030. CNBC also described the new round as an “opportunistic” bridge ahead of a possible public listing. Separately, CNBC reported that OpenAI’s finance chief told employees in August that the company “will be a public company in 2027.” Those are reported plans and remarks, not confirmation of a listing date or a final spending commitment.
Round Size and Terms Remain Open
OpenAI has not announced the round’s final amount, valuation or closing date in the reporting supplied here. The approximately $20 billion target was reported by two outlets, but the reported $11 billion raised so far was attributed to the Wall Street Journal and was not independently confirmed in the source material. It is also unclear whether the $1.25 trillion valuation is pre-money or post-money: the FT and CNBC accounts described the basis differently.
Other reported details—including the expected role of UAE investors, a potential computing-capacity lease and the expected participation of named investment firms—are not final commitments publicly confirmed by OpenAI in the supplied material. The reason for each investor’s decision, and how much of the target a first close may reach, is also not established.
Watch for a First Close
The next clear milestone is whether OpenAI completes a first close and discloses the amount and terms. The Financial Times reported that investors had been given a Friday deadline to commit and that the initial close could be below $20 billion, with a later offering to wealthy individuals potentially filling some of the gap. Those details remain attributed reporting, not a company announcement.
Further reporting or a statement from OpenAI could clarify the funds raised, valuation basis, participating investors and any computing arrangement in the UAE. For Meta, the outlook will depend in part on how spending develops and whether its AI investments generate returns that address S&P’s concerns. Until more information is available, the reports support a picture of tighter scrutiny—not a definitive conclusion that AI financing is contracting across the industry.
Key Questions
Did OpenAI confirm that it has raised $11 billion?
No. The supplied material attributes the approximately $11 billion figure to a Wall Street Journal report and says it was not independently confirmed. OpenAI had not commented on the round in the reporting described.
What fundraising target was reported for OpenAI?
The Financial Times and CNBC reported a target of about $20 billion, down from as much as $30 billion. CNBC said the round was still in progress and the figures could change.
Did S&P downgrade Meta?
No. S&P affirmed Meta’s AA- credit rating and changed its outlook from stable to negative. An outlook change is a warning about the possible direction of a future rating, not itself a downgrade.
Does this mean AI funding is running out?
The reported developments do not show that funding has stopped. They indicate closer scrutiny of large fundraising goals, valuations, spending and the ability to earn returns from AI investment. The OpenAI round is still open, and its final terms are unknown.
Source: ThorstenMeyerAI.com
