OpenAI Seeks $30 Billion as UAE Funds Eye Major AI Investment
OpenAI is engaged in discussions with several investment funds from the United Arab Emirates, notably including Abu Dhabi-based MGX, to secure a foundational role in a $30 billion financing round for the ChatGPT developer, as reported by sources. The funds would establish a syndicate to participate in the round, according to one source. The UAE funds have deliberated on the possibility of contributing a total of up to $10 billion, according to one source. BlackRock Inc. is reportedly in negotiations to join the round in collaboration with that syndicate, according to sources. The fundraise is ongoing and the details could change, said sources.
Representatives for MGX were unavailable for comment outside of standard business hours. OpenAI is reportedly seeking to secure a minimum of $30 billion in capital, aiming for a valuation of approximately $1.4 trillion. This move comes as the company delays its plans for an initial public offering until at least next year, emphasising its commitment to AI safety initiatives. OpenAI most recently raised a $122 billion round in March at a $852 billion valuation, including the money. Leading AI companies, such as OpenAI and Anthropic PBC, have sought substantial investments from affluent backers in the Middle East to address their significant capital requirements for the advancement and maintenance of innovative artificial intelligence software.
MGX has made investments in previous funding rounds for OpenAI and Anthropic. The investment firm raised close to $50 billion earlier this year to accelerate spending on AI infrastructure and technology, as reported. OpenAI has engaged in discussions with the University of California’s endowment fund, which is already an investor, regarding its potential involvement in the funding round, according to sources. Existing backers Thrive Capital and Andreessen Horowitz have also engaged in discussions regarding potential financial contributions, according to sources.
Thrive refrained from providing a comment. Representatives for Andreessen and the University of California did not provide a response to enquiries for comment. In a departure from conventional venture funding practices, OpenAI is offering its pre-money valuation of $1.4 trillion to investors as a fixed price, even in the absence of a designated lead investor, according to sources. Typically, investment firms present terms for funding rounds and engage in negotiations with the company regarding their role as lead investor.
