OpenAI in talks to raise $40B from Reliance, Saudi’s PIF, and other global investors
The funds will support Sam Altman-led firm’s next phase of model development and its large-scale data center project, Stargate.
OpenAI is in discussions to raise up to $40 billion in funding, holding talks with Saudi Arabia’s Public Investment Fund (PIF), Reliance Industries, and UAE-based MGX, reports The Information.
Each investor is expected to contribute at least several hundred million dollars, with SoftBank reportedly leading the round. The funds will support Sam Altman-led firm’s next phase of model development and its large-scale data center project, Stargate.
OpenAI has also approached other major backers including Coatue Management and Founders Fund, each expected to invest at least $100 million. The company is targeting an additional $17 billion in financing by 2027.
Earlier this year, CEO Sam Altman met IT Minister Ashwini Vaishnaw to discuss the country’s efforts to build an affordable AI ecosystem. Altman later planned a visit to the UAE to pursue discussions with MGX on potential investments, sources told Reuters.
The Microsoft-backed company has been aggressively expanding its global fundraising efforts to meet growing AI infrastructure demands.
In April, the company last raised $40 billion in a new funding round, pushing its post-money valuation to $300 billion.
According to a Bloomberg report, the round was being led by SoftBank Group, with Masayoshi Son’s firm contributing $7.5 billion. An additional $2.5 billion will be invested from a syndicate of investors, it added.
The funding also saw participation from Microsoft Corporation, Coatue Management, Altimeter Capital Management, and Thrive Capital.
Moreover, it added that a second tranche of $30 billion is expected to be invested in OpenAI by the end of 2025, comprising $22.5 billion from SoftBank and $7.5 billion from a syndicate of investors.
“Today, we’re announcing new funding—$40 billion at a $300 billion post-money valuation, which enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week,” read the company’s blog.
Edited by Megha Reddy