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OpenAI cuts its valuation target to $1.25 trillion

Published

OpenAI is seeking about $30 billion in new funding, people familiar with the talks said. The target is down from $1.4 trillion after some investors resisted the higher price, and the round is meant to bridge to a possible public listing.

People with knowledge of the talks said demand from Morgan Stanley private wealth clients was weaker than in the past. Some investors were tired after investing heavily in earlier rounds. The bank is leading the process, and the fund Dragoneer floated the deal to those clients.

OpenAI's current valuation is $852 billion, and reports said it raised $122 billion in March 2026. Reports said the round is a bridge to a share listing that could come in the first half of 2027.

Reports said Coatue and funds based in the United Arab Emirates are in talks to lead the round. Reports also said OpenAI told investors on Thursday that it wants signatures by the end of next week. The people said the talks continue and details could change.

Key facts

Who
Morgan Stanley; Dragoneer; George Hammond (FT reporter who wrote the story); George Steer (FT reporter who wrote the story)
When
23 October 2026
Where
UAE
Status
Reported

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