AI Funding Tightens: OpenAI Trims Round, Anthropic IPO Tested
Raising money for AI got harder this week, but it did not stop. OpenAI cut its round target to up to $20 billion, Microsoft priced $25 billion of bonds, and Alphabet's shares fell almost 13% in a day after a quarter of negative free cash flow. Anthropic's IPO filing landed in the middle of it, while Korea, China and the Gulf show investors are choosier, not absent.
Key takeaways
- OpenAI is now seeking up to $20 billion, down from about $30 billion, according to CNBC, which cites the Financial Times for the cut; the round is not closed and OpenAI has not commented (reported, not confirmed by OpenAI) [1].
- Anthropic's public S-1 shows an $80.7 billion first-half net loss, most of it from fair-value changes on convertible notes and derivatives, alongside 1,300% annual sales growth, according to CNBC's reading of the filing [3][4].
- Microsoft priced $25 billion of senior notes on 29 October (company announcement), as CNBC reports Alphabet and Amazon burned cash and the IPO window stays largely shut [7][5].
- Money still flows to hardware and models: FuriosaAI closed a Series D of about $620 million (company statement), NAVER is taking $1 billion from NVIDIA, and DeepSeek is reported to be raising about $15 billion [11][10][12].
What happened to the biggest rounds
CNBC confirmed on 31 October that OpenAI is seeking up to $20 billion, pared from an earlier target of up to $30 billion, and that the round remains open and could change [1]. The Financial Times first reported the cut and a $1.25 trillion post-money valuation, and said some investors reduced their allocations [1]. CNBC reported on 22 October that UAE investors and Coatue were leading the round as an "opportunistic" bridge before a possible IPO [2].
The two CNBC reports describe the $1.25 trillion figure differently: pre-money on 22 October, post-money on 31 October. Treat the valuation basis as unsettled until OpenAI or its investors say otherwise [1][2].
Anthropic's prospectus became public on 26 October, with a planned Nasdaq listing under the ticker ANT [4]. Beyond the loss, CNBC cites 900% net revenue retention and an implied 85% gross margin, and says the company is reportedly seeking a $1.5 trillion to $2 trillion valuation [4]. The filing is the primary source [3].
The filing shows that about 48% of first-half revenue came through cloud providers' marketplaces, up from 11% in 2023, and that Anthropic's long-term compute agreements carry minimum purchase and take-or-pay terms it must pay regardless of use [3].
Big Tech turns to debt and equity
Microsoft reported on 28 October revenue of $92.3 billion, up 19%, with Azure growing 48% [6]. A day later it priced $25 billion of senior unsecured notes maturing from 2028 to 2066, due to close on 4 November [7]. CNBC adds that Microsoft trimmed its capital-spending forecast to $170 billion from $175 billion while keeping positive free cash flow of $18.6 billion [5].
Alphabet reported the same day [8]. CNBC says its free cash flow was negative $9.1 billion, its shares fell almost 13% on 29 October, its worst day, and it kept guidance of up to $205 billion of capital spending [5]. In June Alphabet had already sold an upsized $84.75 billion of equity to fund AI infrastructure [9]. CNBC also reports negative free cash flow at Amazon over the past 12 months and says Oracle will limit new fundraising to $20 billion over the coming years [5].
The IPO window has been largely frozen since SpaceX's record offering in June, CNBC says. Oura, Firmus and Solidigm have postponed or abandoned listings [5].
Where capital still flows: Korea, China and the Gulf
NAVER will receive $1 billion from NVIDIA on 6 November through a third-party share allotment, according to a corrected filing on 30 October as reported by Wowtale [10]. The final share count is set on 3 November, the new shares list on 27 November, and the deal required NAVER to secure at least $9 billion of other computing infrastructure, which it says it has done [10].
FuriosaAI said on 28 October that it closed a Series D of about $620 million at a $2.9 billion post-money valuation [11]. Korea's National Growth Fund committed about $280 million, alongside international investors including Cisco Investments, NeoFort Holding and QUDA Capital [11]. Proceeds go to production of its RNGD inference chip and a third-generation chip being built with Broadcom [11]. UAE investors are also the lead named backers of OpenAI's round [2].
In China, Bloomberg first reported that DeepSeek is raising about 100 billion yuan (about $15 billion); Reuters, citing four people, put the pre-money valuation at about 500 billion yuan, with CATL and Tencent among the biggest investors. DeepSeek could not be reached for comment, so this is reported, not confirmed [12].
| Deal | Size | Status and label |
|---|---|---|
| OpenAI round | up to $20B (was about $30B) | reported, open; UAE investors and Coatue leading [1][2] |
| Microsoft notes | $25B | announced, closes 4 Nov [7] |
| NAVER and NVIDIA | $1B | filing, paid 6 Nov [10] |
| FuriosaAI Series D | about $620M | announced [11] |
| DeepSeek | about $15B | reported, not confirmed [12] |
| Anthropic IPO | $1.5T to $2T sought | reported; pricing not set [4] |
Why it matters
Each route to AI capital was tested within days: private mega-rounds, public markets, and the bond and equity markets. The labs with the largest compute commitments face the sharpest questions, because those commitments are contractual and the revenue behind them is not guaranteed.
Smaller deals tied to hardware or to state backing, such as Furiosa and NAVER, are proceeding. That suggests investors still pay for assets they can see, in line with our 26 October look at compute financing [13].
What to watch next
- NAVER: share count fixed on 3 November, payment on 6 November, listing on 27 November [10].
- Microsoft: closing of the notes on 4 November [7].
- Anthropic: third-quarter financials, which CNBC says investors are still waiting for, then roadshow and pricing in the coming weeks [5].
- OpenAI: whether the round closes at up to $20 billion and at what valuation [1].
- DeepSeek: any confirmation or denial of the round [12].
Our take
Our analysis: the signal is not that AI money has run out but that it is being priced against cash flow. Hardware makers and state-backed vehicles raised on schedule, while the labs with the biggest fixed commitments are being asked to show how those commitments compare with cash. This is analysis, not financial advice.
FAQ
Has OpenAI closed its new round? No. CNBC says it is still open and the figures could change [1].
Is Anthropic profitable? The S-1 reports a first-half net loss of $80.7 billion, which CNBC says came mostly from fair-value changes on convertible notes and derivative liabilities [3][4].
Is DeepSeek's $15 billion round confirmed? No. It is reported by Bloomberg and Reuters; DeepSeek has not commented [12].
Sources
- OpenAI pares fundraising goal, now seeking up to $20 billion in latest round, CNBC, 31 October 2026. Cites the Financial Times, which first reported the cut.
- OpenAI nears up to $30 billion funding round at $1.25 trillion valuation led by UAE investors, CNBC, 22 October 2026.
- Anthropic PBC Form S-1, US Securities and Exchange Commission, 26 October 2026. Primary (company filing).
- Anthropic's IPO could be 'speculative fiction' or a 'generational moment', CNBC, 27 October 2026.
- Anthropic's path to the Nasdaq just got a lot bumpier, CNBC, 31 October 2026.
- Microsoft announces first quarter results, Microsoft, 28 October 2026. Primary (company release).
- Microsoft announces debt offerings, Microsoft, 29 October 2026. Primary (company announcement).
- Alphabet announces third quarter 2026 results, Alphabet, 28 October 2026. Primary (company release; figures in this article come from CNBC).
- Alphabet announces upsize and pricing of $84.75 billion equity capital raise, Alphabet, 3 June 2026. Primary (company announcement).
- NAVER raises USD 1 billion from NVIDIA to expand AI factory business, Wowtale, 30 October 2026. Reports NAVER's corrected filing.
- FuriosaAI closes $620 million Series D, FuriosaAI, 28 October 2026. Primary (company statement).
- DeepSeek wrapping up US$15bil fundraising to fuel AI race, Reuters via The Star, 22 October 2026. Cites Bloomberg for the first report.
- AI compute financing: debt, guarantees and new rounds, AI Worldwire, 26 October 2026.
Disclosure: the AI system that assisted this article, Claude, is made by Anthropic, one of the companies covered here. AI Worldwire is independent and has no commercial relationship with the companies covered, unless stated. Research and drafting are assisted by AI; every article is reviewed and approved by a human editor before publication. Subscribe to the AI Worldwire newsletter. Last updated: 2 November 2026.