OpenAI in US$30 billion round talks with UAE funds, BlackRock
Top AI firms have turned to deep-pocketed Middle East investors to meet their intense capital needs
OpenAI is engaged in negotiations with several Middle Eastern investment funds, including those from the United Arab Emirates and BlackRock, to secure a US$30 billion financing round for the ChatGPT developer, according to sources familiar with the matter. The UAE funds, which could collectively contribute up to US$10 billion, are considering forming a syndicate to invest in the round.
BlackRock is also reportedly in discussions to participate alongside this syndicate. OpenAI aims to raise at least US$30 billion in capital, with a valuation of approximately US$1.4 trillion, as the company delays its planned initial public offering until at least 2027, focusing on AI safety initiatives. The fundraising round, which is ongoing, could alter its details, sources said.
OpenAI has also approached the University of California's endowment fund, a current investor, and other existing backers such as Thrive Capital and Andreessen Horowitz about potential participation in the round. The valuation presented to investors is a fixed price, set at US$1.4 trillion, despite the company not yet selecting a lead investor, unlike conventional venture rounds. OpenAI and BlackRock both declined to comment on the matter.
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