OpenAI reportedly in talks with UAE capital for $30 billions financing; multiple funds may form a consortium to invest up to $10 billions

According to Golden Ten Data, sources reveal that OpenAI is in funding talks with several investment funds from the United Arab Emirates, including Abu Dhabi’s MGX, hoping they will become major investors in a new round of financing worth at least $30 billion. The related funds could form an investment consortium, with a total contribution reaching up to $10 billion. BlackRock is also discussing participation in this round and may co-invest with the aforementioned consortium.

The fundraising is still ongoing, and the final investment size and participants may change. In addition to UAE capital and BlackRock, OpenAI has also consulted with its existing investor, the University of California endowment fund, about joining the funding round, and Thrive Capital and Andreessen Horowitz have discussed the possibility of increasing their investments.

Previous reports indicated that OpenAI aims to raise at least $30 billion at an estimated valuation of about $1.4 trillion, and has postponed its initial public offering (IPO) plans until at least next year to focus on AI safety efforts. In March this year, OpenAI just completed a $122 billion funding round, with a company valuation of $852 billion at that time. If this deal goes through as planned, its valuation will soar dramatically within about half a year.

Unlike typical venture capital funding, sources said that OpenAI has not yet identified a lead investor for this round, but has offered a pre-money valuation of $1.4 trillion as a fixed price to potential backers. Usually, investment institutions submit funding terms and negotiate the valuation and lead investor arrangements with the company.

As OpenAI seeks support from Middle Eastern capital, investments required for chips, data centers, electricity and other infrastructure to develop and operate cutting-edge AI models are rising sharply. Leading AI firms, including OpenAI and Anthropic, have repeatedly turned to deep-pocketed Middle Eastern investors in recent years to meet their massive capital needs.

MGX previously participated in fundraisings for both OpenAI and Anthropic. Earlier this year, this Abu Dhabi investment institution raised close to $50 billion to accelerate investments in AI infrastructure and technology. If UAE funds become major backers in OpenAI’s current round, it would further highlight Middle Eastern capital’s engagement in the global boom of AI investment.