OpenAI is negotiating with investment funds from the United Arab Emirates, such as Abu Dhabi's MGX, to support a $30 billion funding round for the creator of ChatGPT, Bloomberg News reported on Monday, referencing sources familiar with the situation.
The report indicated that UAE funds have considered a total investment of up to $10 billion together as part of a syndicate, with BlackRock also in negotiations to join.
The fundraising is in progress and conditions may vary, as stated in the report.
OpenAI is aiming for at least $30 billion at a valuation of approximately $1.4 trillion while postponing its initial public offering plans until at least next year.
OpenAI most recently secured $122 billion in March with a valuation of $852 billion. MGX has participated in earlier funding rounds for OpenAI and Anthropic and secured almost $50 billion earlier this year to boost investments in AI infrastructure and technology, according to reports.
Leading AI companies, such as OpenAI and Anthropic PBC, have sought funding from wealthy investors in the Middle East to fulfill their significant financial requirements for creating and maintaining advanced artificial intelligence software.
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MGX has participated in earlier investment rounds for OpenAI and Anthropic. The investment company gathered nearly $50 billion earlier this year to boost expenditures on AI infrastructure and technology.
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According to reports, OpenAI has engaged in discussions with the University of California’s endowment fund, which is already an investor, regarding its involvement in the round. Current investors Thrive Capital and Andreessen Horowitz have likewise talked about contributing funds.
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According to reports, OpenAI is offering its $1.4 trillion pre-money valuation to investors as a fixed amount, unlike usual venture rounds, even though a lead investor has not been finalized yet. Typically, investment firms present terms for funding rounds and engage in negotiations with the company regarding leadership.