OpenAI, the creator of ChatGPT, is reportedly in discussions with major investors from Saudi Arabia and India to raise a substantial amount of capital, estimated to be around $40 billion, according to a report by The Information.
The report indicates that the AI company has engaged with Saudi Arabia’s Public Investment Fund (PIF), India’s Reliance Industries, and existing shareholder MGX from the United Arab Emirates concerning this $40 billion financing round.
OpenAI intends to utilize this funding to develop powerful new AI systems and build the extensive infrastructure necessary to support them.
Citing individuals familiar with the fundraising efforts, the report suggests that each of these investors could contribute at least hundreds of millions of dollars.
OpenAI is actively seeking to raise additional capital to support its ongoing model development and its ambitious infrastructure initiative, dubbed “Stargate,” with SoftBank leading this financing round.
Earlier this year, OpenAI CEO Sam Altman met with India’s IT Minister to discuss the country’s plans for establishing a low-cost AI ecosystem. Following that meeting, Altman also reportedly intended to visit the UAE for talks with the Abu Dhabi-based investment group MGX regarding potential funding, as per two sources with knowledge of the matter.
The Microsoft-backed startup has also held discussions to raise at least $100 million each from Coatue and Founders Fund as part of the same fundraising round, The Information report added. Furthermore, the company anticipates securing an additional $17 billion in 2027.
Reuters was unable to immediately verify the report.
OpenAI, PIF, Reliance Industries, MGX, and SoftBank did not immediately respond to Reuters’ requests for comment.
