OpenAI in talks to raise $50B from Middle East investors
What's the story
OpenAI, the artificial intelligence (AI) company behind ChatGPT, is looking to raise at least $50 billion in a new funding round. The company is targeting a valuation of between $750 billion and $830 billion. Talks are still in early stages and the final amount could vary, according to Bloomberg. CEO Sam Altman has been meeting with top investors in the Middle East, including Abu Dhabi state-backed funds.
Investment goals
Plans for AI infrastructure
The funds raised would be used to finance OpenAI's ambitious plans for the future of artificial intelligence (AI). This includes building advanced chips, massive data centers, and hiring top-tier AI talent. One of these data centers will be in the UAE and is expected to be among the largest in the world.
Competitive landscape
OpenAI's position in the AI industry
Despite not being profitable yet, OpenAI is considered a leader in cutting-edge AI technology. The company has pledged to invest over $1.4 trillion on the AI infrastructure over the next few years. This comes as it faces stiff competition from tech giants such as Google and up-and-coming players such as Anthropic.
Funding history
Previous funding and future plans
OpenAI has raised billions in recent years to cover the high costs of chips, data centers, and talent needed to create new AI systems. The company had previously discussed raising tens of billions at a $750 billion valuation. It had also raised funds from Abu Dhabi-based tech investment firm MGX and partnered with G42 for a massive data center in the UAE.