OpenAI in Talks with Reliance, Saudi PIF & UAE MGX for $40 Bn Funding

According to reports, OpenAI, the creator of ChatGPT, is talking to global investors, including India’s Reliance Industries, Saudi Arabia’s Public Investment Fund (PIF), and MGX (MGX Fund Management Limited) in the UAE, about raising a whopping $40 billion.  The Information has reported that these investors would each have to commit “at least hundreds of millions of dollars” to OpenAI’s funding round.

The Microsoft-backed US AI developer hopes to use the raised funds to support the development of the company’s AI models as well as an extensive infrastructure dubbed ‘Stargate’. 

The talks follow OpenAI CEO Sam Altman’s visit to India earlier this year, where he spoke to IT Minister Ashwini Vaishnaw about India’s ambitions to create a comparatively low-cost AI ecosystem. After India, Altman is also presumed to have gone to the UAE to meet with MGX regarding fundraising, according to sources cited by Reuters.

If the funding round closes, it not only reinforces OpenAI’s crown as the global AI champion, but it is a substantial strategic investment for India and the Middle East in terms of achieving their tech and digital transformation paths.