Global technology stocks rebounded on Monday, but the recovery came as investors continued to question whether the sector’s enormous spending on artificial intelligence will generate sufficient returns.
OpenAI was reportedly forced to reduce its fundraising target for an upcoming round by $10 billion and lower its valuation goal to $1.25 trillion from $1.4 trillion. The Financial Times, citing unnamed sources, reported that the company had set a Friday deadline for investors to commit. The Wall Street Journal reported that OpenAI had raised less than half of the $30 billion it initially sought.
The artificial intelligence company is expected to file to go public as soon as next year, according to the report cited in the original coverage.
Market performance has also highlighted the pressure on the technology sector. Nasdaq Composite futures indicated a stronger opening, but the index fell 5.3 percent in October, its steepest monthly decline since March 2025. Shares of major artificial intelligence players were hit particularly hard: Alphabet dropped 18.7 percent during the month, while Meta fell 15.2 percent.
At the same time, Alphabet is preparing a euro-denominated bond offering managed by Barclays, BNP Paribas and Deutsche Bank, according to Bloomberg. The debt is intended to help finance the company’s artificial intelligence expansion.
The increase in borrowing has unsettled parts of the market. Investors are increasingly seeking hedges against a broader decline in technology and artificial intelligence stocks, while S&P Global Ratings downgraded Meta’s credit outlook on Friday.
Sources: The New York Times Business.