Rui Ma(@ruima):Wow. It was bound to happen one day, but investor interest in OpenAI looks less robust than it did at the beginning of the year. OpenAI reportedly has "only $11B" committed toward what was supposed to be a $30B round, per WSJ. FT now says the target is being cut to $20B, with the valuation lowered from $1.4T to $1.25T (I do want to put the "only 11 billion" in quotes, though, because it's just gotten so ridiculous, the size of these private fundraisings.) A UAE consortium including MGX is reportedly the biggest participant, and now they’re pitching family offices and wealthy individuals. I guess the institutional checks aren’t adding up to what they wanted. It probably doesn’t help that OpenAI reported $6.7B in Q2 revenue versus Anthropic’s $11.6B, with Anthropic’s IPO expected next month. The revenue accounting differs, so it’s not a clean comparison, but investors will be making it anyway. Don’t cry for OpenAI, though: $1.25T is still about 47% above the $852B valuation it raised at in March.

2026.10.31 15:16

Wow. It was bound to happen one day, but investor interest in OpenAI looks less robust than it did at the beginning of the year. OpenAI reportedly has "only $11B" committed toward what was supposed to be a $30B round, per WSJ. FT now says the target is being cut to $20B, with the valuation lowered from $1.4T to $1.25T (I do want to put the "only 11 billion" in quotes, though, because it's just gotten so ridiculous, the size of these private fundraisings.) A UAE consortium including MGX is reportedly the biggest participant, and now they’re pitching family offices and wealthy individuals. I guess the institutional checks aren’t adding up to what they wanted. It probably doesn’t help that OpenAI reported $6.7B in Q2 revenue versus Anthropic’s $11.6B, with Anthropic’s IPO expected next month. The revenue accounting differs, so it’s not a clean comparison, but investors will be making it anyway. Don’t cry for OpenAI, though: $1.25T is still about 47% above the $852B valuation it raised at in March.

The Kobeissi Letter@KobeissiLetter

2026.10.31 02:33

BREAKING: OpenAI has slashed its funding target by -$10 billion and its valuation by -$150 billion amid this week's technology stock selloff, per FT. OpenAI is now seeking to raise $20 billion at a $1.25 trillion valuation, down from $30 billion at a $1.4 trillion valuation. The company set a deadline of today for investors to commit to the funding round. That "first close" is now expected to bring in less than $20 billion, after some of its investors lowered their allocations to the round. This comes just weeks before the expected Anthropic IPO.