ChatGPT maker OpenAI is in discussions to raise up to $40 billion in funding, with Saudi Arabia’s Public Investment Fund (PIF) and UAE-based sovereign wealth fund MGX among the key investors being courted, according to a report by The Information.
The massive funding round, which would be led by SoftBank Group, is expected to see each major investor contribute at least several hundred million dollars. India’s Reliance Industries is also reportedly part of the discussions, marking a significant push by OpenAI to secure funding from major economies in the Middle East and Asia.
The funds will support the Sam Altman-led company’s next phase of AI model development and its ambitious Stargate data center project, as OpenAI continues to scale its infrastructure to meet growing demand for artificial intelligence capabilities.
The AI firm currently serves over 500 million weekly users on ChatGPT and has recently hit $10 billion in annualized recurring revenue, nearly doubling from $5.5 billion ARR in 2024. It is targeting ambitious growth of $125 billion in revenue by 2029, though it reported losses of around $5 billion last year as it invests heavily in AI development and infrastructure.
Beyond the Middle Eastern sovereign funds, OpenAI has also approached traditional Silicon Valley investors including Coatue Management and Founders Fund, with each expected to invest at least $100 million in the round. The company is targeting an additional $17 billion in financing by 2027, underlining the massive capital requirements of frontier AI development.
This latest funding round would build on OpenAI’s previous massive raise towards the end of March, when the company secured $40 billion at a $300 billion post-money valuation. That round was also led by SoftBank Group, with Masayoshi Son’s firm contributing $7.5 billion, while Microsoft Corporation, Coatue Management, Altimeter Capital Management, and Thrive Capital participated.
The Microsoft-backed startup has been aggressively expanding its global fundraising efforts as it faces mounting infrastructure costs. OpenAI currently serves over 500 million weekly users on ChatGPT and has reported $10 billion in annual recurring revenue, driven by widespread adoption of its AI tools.
For Middle Eastern sovereign wealth funds, the potential investment represents an opportunity to gain exposure to one of the world’s most valuable AI companies. Both PIF and MGX have been actively investing in technology companies as part of their countries’ economic diversification strategies.
The involvement of regional sovereign funds also highlights the growing importance of Middle Eastern capital in funding the next generation of AI infrastructure, as companies like OpenAI require billions of dollars to develop increasingly sophisticated models and the computing power to run them.
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