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OpenAI cuts valuation target by $150B amid AI stock sell-off, signaling investor caution.

Market News
23 Oct 2026
24/7 Wall Street
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Bearish
OpenAI cuts valuation target by $150B amid AI stock sell-off, signaling investor caution.

OpenAI has reduced its valuation target from $1.4 trillion to $1.25 trillion following pushback from private investors, coinciding with a sharp drop in public AI stocks. This $150 billion cut reflects growing investor caution as OpenAI seeks up to $30 billion in a funding round led by UAE and Coatue investors ahead of a potential 2027 IPO. Microsoft, a major OpenAI backer, remains focused on its Azure cloud contract, which drives significant revenue despite OpenAI's valuation adjustments. The move highlights increasing scrutiny on AI company valuations as competition and market conditions evolve.

As of Oct 23, 2026 19:02 WIB, Microsoft shares on Pluang are priced at USD 518.53, showing a slight decline of 0.49% over the past day. Despite OpenAI's valuation cut, Microsoft maintains a strong market presence with a market cap of $3.87 trillion and enterprise value of $3.85 trillion. Notably, Pluang order activity leans more towards selling at 59%, indicating cautious sentiment among investors.

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