OpenAI Cuts Fundraising Target to $20B

OpenAI slashed its fundraising goal by a third, dropping from thirty billion dollars to twenty billion dollars overnight. That cut also trimmed its projected valuation to one point two five trillion dollars, down from one point four trillion. The move came as Wall Street turned sour after a brutal tech sell-off. Alphabet's shares plunged twelve percent, marking its worst day on record. Meanwhile, rival Anthropic filed an S-1 on Monday, showing soaring revenue and positive cash flow ahead of its next-month IPO. Investors are also watching hyperscalers bleed cash, with Microsoft raising twenty-five billion dollars in bonds. Meta announced a ninety-five billion dollar equity raise to fund its AI push. S&P Global even downgraded Meta's outlook to negative, warning its leverage could hit the one-times threshold by 2027. OpenAI's sudden target cut underscores how quickly the AI funding frenzy is cooling. As the Financial Times put it, "the timing couldn't have been worse."