OpenAI, the artificial intelligence company backed by Microsoft and known for creating ChatGPT, is reportedly in advanced stages of securing around $40 billion in new funding from investors in Saudi Arabia and India, according to a report by The Information on Tuesday.
This major funding round — potentially one of the largest in tech in recent years — is intended to speed up OpenAI’s development of AI models and support its large-scale infrastructure initiative, internally referred to as “Stargate.” Sources indicate that SoftBank, the Japanese investment firm, is leading the effort.
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Investors said to be part of these discussions include Saudi Arabia’s Public Investment Fund (PIF), India’s Reliance Industries, and the UAE-based MGX, an existing OpenAI stakeholder. Each is expected to invest hundreds of millions of dollars, according to the report.
CEO Sam Altman has reportedly engaged in high-level discussions across the region in recent months. In India, he met with the IT Minister to explore creating a cost-effective AI ecosystem. He also visited the UAE to hold talks with MGX, sources confirmed.
The fundraising round is also said to involve Coatue Management and Founders Fund, both expected to contribute at least $100 million each. Additionally, there may be a further $17 billion invested by 2027 as OpenAI expands its infrastructure and research efforts.
Driven by rising demand for advanced computing power for tools like ChatGPT and DALL·E, OpenAI is pursuing the Stargate project — a long-term collaboration with Microsoft to build cutting-edge AI training facilities.
This anticipated investment from Middle Eastern and South Asian entities underscores a broader global push to stake a claim in the rapidly evolving AI industry, as countries and corporations aim to shape the future of artificial intelligence.
