OpenAI is in talks with several investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, as it seeks to anchor a US$30 billion funding round for the ChatGPT maker, according to people familiar with the matter.
The UAE funds have discussed investing as much as US$10 billion combined, with the investors expected to form a syndicate for the round, one of the people said.
BlackRock is also in discussions to participate alongside the UAE investors, although the fundraising remains ongoing and the terms could change, the people said.
OpenAI and BlackRock declined to comment while representatives for MGX did not respond to requests for comment outside normal business hours.
OpenAI is seeking at least US$30 billion at a valuation of about US$1.4 trillion, according to Bloomberg News. The company has pushed back plans for an initial public offering until at least 2027 as it focuses on AI safety efforts.
The latest fundraising would come months after OpenAI raised US$122 billion in March at an US$852 billion valuation, including the money raised.
OpenAI and other leading AI companies such as Anthropic have increasingly turned to deep-pocketed Middle Eastern investors to fund the heavy costs of developing and supporting advanced AI systems.
MGX has previously invested in funding rounds for both OpenAI and Anthropic. The investment firm raised close to US$50 billion earlier this year to accelerate spending on AI infrastructure and technology, Bloomberg News reported.
OpenAI has also discussed the funding round with the University of California’s endowment fund, an existing investor, while Thrive Capital and Andreessen Horowitz have also considered participating, the people said.
Thrive declined to comment while representatives for Andreessen Horowitz and the University of California did not respond to requests for comment.
Unlike a typical venture round, OpenAI is presenting its US$1.4 trillion pre-money valuation to investors as a fixed price despite not having settled on a lead investor, according to the people.
Investment firms would normally submit funding terms and negotiate with a company over which investor leads the round.
