OpenAI is negotiating a $30 billion investment round with major international investors, such as the Public Investment Fund (PIF) of Saudi Arabia, Reliance Industries of India, and MGX, located in the United Arab Emirates.
SoftBank is spearheading the massive fundraising campaign and may provide at least three-quarters of the next tranche.
Each of the potential investors may spend hundreds of millions of dollars, according to reports, though talks are still in their early stages and the final participant list could vary.
With a pre-money valuation of $260 billion for this round, OpenAI would become one of the most valuable private tech companies in the world if the new funding turns successful.
With an investment, the Saudi sovereign wealth fund, which oversees more than $900 billion in assets, would change its approach from investing directly in firms like OpenAI to supporting US tech through venture funds like Andreessen Horowitz, Iconiq Capital, and SoftBank's Vision Fund. It is noteworthy that PIF has a long history with SoftBank, having been a major backer of the first Vision Fund.
In the meantime, OpenAI is fortifying its regional connections. During former US President Donald Trump's recent trip to Riyadh, where the country made a number of announcements pertaining to artificial intelligence, CEO Sam Altman allegedly met Saudi Crown Prince Mohammed bin Salman.
The first $10 billion of OpenAI's $40 billion round has already been raised, with $2.5 billion coming from investors other than SoftBank. Sequoia Capital, Andreessen Horowitz, and GIC, Singapore's sovereign wealth fund, are among them; they each contributed at least $200 million. The company has also received support from Microsoft, Thrive Capital, Coatue, Altimeter Capital, and Tiger Global Management.
As part of this phase, OpenAI is also in negotiations with Coatue and Founders Fund to raise a minimum of $100 million each.
As ChatGPT becomes more integrated into consumer and business operations, OpenAI now serves more than 500 million weekly active users, up from 300 million in December.
The ability of OpenAI to reorganize its corporate governance before the end of the year is also necessary for the second tranche to be completed. A plan to split the company's for-profit division from its nonprofit parent was shelved last month. As OpenAI moves toward a structure that gives shareholders regular ownership rather than capped profit units, the nonprofit board will continue to have authority.
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The company has also hinted that it would try to raise an additional $17 billion in 2027, though the exact amount and timing of that offer are still up in the air.