OpenAI has reduced its latest fundraising target by $10 billion, now seeking approximately $20 billion at a $1.25 trillion valuation, down from the previously planned $30 billion round at $1.4 trillion. The cut comes amid a sharp selloff in AI-related public market stocks and growing concerns over the scale and pace of AI spending. The ChatGPT developer had marketed the original deal as investors' final opportunity to take a stake before its anticipated IPO next year, citing rapid revenue growth since July to justify nearly doubling its prior $852 billion valuation. OpenAI set a subscription deadline last Friday, with the first close expected to fall below $20 billion as some investors have already reduced their commitments. The downsizing also coincides with competitor Anthropic preparing to go public, further overshadowing OpenAI's fundraising efforts.