OpenAI in Talks with Saudi, UAE and India’s Reliance to Secure $40 Billion Funding
OpenAI, the creator of ChatGPT, is in talks with Saudi Arabia’s Public Investment Fund, India’s Reliance Industries, and current stakeholder MGX from the United Arab Emirates, as part of its efforts to raise $40 billion, The Information reported. The report cited sources familiar with the fundraising efforts, in which the investors are expected to contribute at least hundreds of millions of dollars each. With SoftBank leading the financing, OpenAI is looking to raise more funds to fuel its model development and ambitious infrastructure plan, Stargate. A stake in OpenAI by Saudi Arabia’s wealth fund, which exceeds $900 billion, would reportedly highlight the kingdom’s rekindled focus on directly investing in American technology startups. This marks a shift from previous years, when it supported tech startups via numerous US venture capital firms, including Andreessen Horowitz and Iconiq Capital, along with SoftBank’s Vision Fund. The report said that OpenAI needs to expand its investors beyond Microsoft and Silicon Valley firms. The company plans to raise an extra $17 billion by 2027, though details are likely to change. It is negotiating with Saudi Arabia’s PIF and others to secure $30 billion for a $40 billion funding round, valuing ChatGPT’s creator at $260 billion. OpenAI has reportedly secured the full $10 billion from its first instalment, including $2.5 billion from investors other than SoftBank. Sequoia Capital, Andreessen Horowitz, and GIC have each invested at least $200 million, while Microsoft, Thrive Capital, Coatue, Altimeter Capital, and Tiger Global Management have also contributed. Consequently, SoftBank’s share has decreased from $8.5 billion to $7.5 billion since April. Reuters reported that OpenAI CEO Sam Altman planned to visit the United Arab Emirates in February to discuss raising funds with Abu Dhabi investment group MGX. Altman’s Abu Dhabi stop is a key moment for the ChatGPT maker, as established US firms face a new challenge from a cheaper Chinese alternative, DeepSeek. Furthermore, it has been reported that OpenAI plans to establish a data centre in India. The organisation also revealed that companies utilising its APIs, ChatGPT Enterprise, and ChatGPT Edu will have the option to store customer data within India, AIM reported. OpenAI started discussions in February to create data centre operations in India, which will store data for Indian and some neighbouring users. Most of its servers are in Texas, USA, and the company relies on Microsoft’s Azure Cloud services for global access, including in India.
With SoftBank leading the financing, OpenAI is looking to raise more funds to fuel its model development and ambitious infrastructure plan, Stargate.
With SoftBank leading the financing, OpenAI is looking to raise more funds to fuel its model development and ambitious infrastructure plan, Stargate.
["India investment", "OpenAI funding"]
["Go", "ChatGPT", "API", "OpenAI", "AI", "R", "OpenAI funding", "India investment", "GPT", "Aim", "GAN", "Azure"]
["AI", "ChatGPT", "OpenAI", "Aim", "Azure", "R", "Go", "API", "GPT", "GAN"]
Smruthi brings over two years of experience in reporting on the global energy industry. They hold a Master's Degree from the University of Leeds in International Journalism and a Bachelor's Degree from Christ University in Media Studies, Economics and Political Science.