OpenAI cuts funding target to $20 billion as AI investor caution grows

OpenAI has reduced its latest fundraising target to $20 billion at a $1.25 trillion valuation, down from $30 billion at $1.4 trillion, with only $11 billion committed so far. The move comes as rival Anthropic prepares a November IPO and as Meta, Microsoft, Alphabet, and Amazon raise tens of billions in debt and equity for their own AI spending. The article notes most of these firms are now cash-flow negative except Microsoft.