OpenAI, the Microsoft-backed artificial intelligence firm behind ChatGPT, is in advanced discussions with investors from Saudi Arabia and India to raise approximately $40 billion in fresh capital, a report by The Information revealed on Tuesday.
The proposed funding round, one of the largest in the tech industry in recent years, is aimed at accelerating OpenAI’s model development and supporting its ambitious infrastructure project, codenamed “Stargate.” The initiative is being spearheaded by Japanese conglomerate SoftBank, according to individuals familiar with the matter.
Among the investors reportedly involved in the talks 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 potential backers could contribute hundreds of millions of dollars, the report said.
OpenAI’s CEO Sam Altman has in recent months held high-level meetings with stakeholders in the region. Earlier this year, Altman met with India’s IT Minister to discuss building a low-cost AI ecosystem in the country. He also travelled to the United Arab Emirates to engage in talks with MGX, sources told The Information.
The company is also reported to be in discussions with Coatue Management and Founders Fund, with each expected to contribute at least $100 million. The same fundraising effort could extend to a future commitment of an additional $17 billion by 2027, as OpenAI continues to scale its infrastructure and research capabilities.
OpenAI, which has grown rapidly on the back of its generative AI tools like ChatGPT and DALL·E, has seen a surge in demand for more powerful computing resources. Its Stargate infrastructure project, reportedly developed in partnership with Microsoft, is expected to span several years and aims to create advanced AI training facilities.
The potential influx of capital from Middle Eastern and South Asian investors marks a significant moment for the global AI race, as countries and conglomerates vie to secure influence in shaping the future of artificial intelligence technologies.
