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OpenAI explores Middle East sovereign wealth funding

OpenAI is actively engaging with sovereign wealth funds across the Middle East as part of preparations for a new multibillion dollar funding round, according to people familiar with the matter. The discussions signal how global capital from the Gulf region is becoming increasingly central to financing the next phase of artificial intelligence growth.

Sources indicate that the upcoming round could reach approximately $50 billion in total funding, though the final size remains fluid. Negotiations are still ongoing, and no formal term sheets have been signed at this stage. The talks are confidential, and details may evolve as discussions progress.

Sam Altman holds talks in the UAE

OpenAI Chief Executive Officer Sam Altman is currently in the United Arab Emirates, where he is participating directly in investment discussions with regional backers. The UAE is home to some of the world’s most influential sovereign wealth funds, including entities with deep exposure to technology, infrastructure, and long term innovation strategies.

People close to the talks suggest that OpenAI is aiming to finalize the funding round within the first quarter of the year, positioning the company with substantial capital to support computing infrastructure, advanced model development, and global partnerships.

From ChatGPT to one of the world’s most valuable startups

OpenAI rose to global prominence after launching ChatGPT in late 2022, a release that effectively ignited the current generative AI boom. Since then, the company has experienced unprecedented growth, reaching hundreds of millions of users and becoming one of the fastest scaling commercial technology firms in history.

To support this expansion, OpenAI has raised tens of billions of dollars over the past two years. The capital has been used to train increasingly complex AI models, expand enterprise offerings, and invest heavily in data centers and specialized chips required for large scale AI workloads.

Record breaking funding and soaring valuation

In 2024, OpenAI completed a landmark $40 billion financing round led by SoftBank, marking the largest private technology funding round ever recorded. The deal also included continued participation from Microsoft, OpenAI’s strategic partner, alongside major institutional investors such as Coatue, Altimeter, and Thrive Capital.

Later in the year, the company finalized a $6.6 billion secondary share sale, pushing its valuation to an estimated $500 billion. That valuation places OpenAI among the most valuable private companies globally, rivaling long established technology giants despite its relatively young age.

Why Middle East capital matters

Sovereign wealth funds in the Middle East collectively manage trillions of dollars in assets and have been increasingly active in artificial intelligence, cloud computing, and semiconductor investments. For OpenAI, attracting capital from these funds not only provides financing but also strengthens its strategic footprint in regions investing heavily in digital transformation and AI driven economic diversification.

If completed at the expected scale, the new funding round would further cement OpenAI’s position as the most heavily funded AI company in the world and underline the growing role of global sovereign investors in shaping the future of artificial intelligence.

As negotiations continue, the final structure, valuation, and investor lineup remain subject to change, but the talks themselves highlight just how central OpenAI has become to the global AI investment landscape.

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