OpenAI seeks investment from India's richest person amid funding push
What's the story
OpenAI is in talks with several global investors including Saudi Arabia's Public Investment Fund (PIF), India's Reliance Industries, and UAE-based MGX.
The tech giant is looking to raise $30 billion as part of its ongoing $40 billion funding round.
The effort is being led by SoftBank, which could contribute at least three-quarters of the upcoming installment.
If the talks materialize, Mukesh Ambani, India's wealthiest individual and chairman of Reliance, could join the list of investors backing the company behind ChatGPT.
Strategic shift
PIF's potential direct investment in OpenAI
Saudi sovereign wealth fund PIF, which manages over $900 billion in assets, is considering a direct investment in OpenAI.
This would be a departure from its current strategy of investing in US tech via venture funds like Andreessen Horowitz and SoftBank's Vision Fund.
The move comes as PIF recently launched an AI firm called HUMAIN to invest in start-ups that adopt its technology.
Funding progress
OpenAI has already raised $10 billion
OpenAI has already raised the first $10 billion of its $40 billion round.
This includes a $2.5 billion contribution from investors other than SoftBank. These backers include Sequoia Capital, Andreessen Horowitz, and Singapore's sovereign wealth fund GIC.
In the next installment due by December, SoftBank could contribute more than $20 billion but has yet to clarify how it will fund such a large outlay.
Infrastructure goals
OpenAI's capital requirement and future plans
OpenAI's capital requirement is unprecedented, with internal projections estimating a spending of around $90 billion between 2025 and 2027.
This includes $35 billion for servers to run current products and another $55 billion for server infrastructure to support future development.
The company has also discussed raising at least $100 million each from Coatue and Founders Fund as part of this phase, according to The Information.