OpenAI, the Microsoft-backed artificial intelligence firm renowned for ChatGPT, is reportedly in advanced discussions with investors from Saudi Arabia and India to secure approximately $40 billion in new capital, as revealed in a report by The Information on Tuesday.
This proposed funding round, which ranks among the largest in the technology sector in recent years, aims to accelerate OpenAI’s model development and bolster its ambitious infrastructure project, codenamed “Stargate.” Japanese conglomerate SoftBank is reportedly spearheading this initiative, according to individuals familiar with the matter.
Among the investors said to be involved in these discussions are Saudi Arabia’s sovereign wealth fund—the Public Investment Fund (PIF), India’s Reliance Industries, and United Arab Emirates-based MGX, which is already an existing shareholder. Each of these prospective backers could contribute hundreds of millions of dollars, the report indicated.
In recent months, OpenAI’s CEO Sam Altman has conducted high-level meetings with key stakeholders in the region. Earlier this year, Altman met with India’s IT Minister to discuss the establishment of a low-cost AI ecosystem within the country. He also traveled to the United Arab Emirates for talks with MGX, sources informed The Information.
The company is also reported to be in discussions with Coatue Management and Founders Fund, with each expected to commit at least $100 million. This fundraising effort could potentially extend to a future commitment of an additional $17 billion by 2027, as OpenAI continues to expand its infrastructure and research capabilities.
OpenAI, which has experienced rapid growth driven by its generative AI tools like ChatGPT and DALL·E, has witnessed a surge in demand for more powerful computing resources. Its Stargate infrastructure project, reportedly developed in partnership with Microsoft, is anticipated to span several years and aims to establish advanced AI training facilities.
The potential influx of capital from Middle Eastern and South Asian investors marks a significant juncture in the global AI race, as nations and conglomerates actively compete to secure influence in shaping the future trajectory of artificial intelligence technologies.
