OpenAI in talks for $40bn fundraise with Saudi PIF, India's Reliance, and UAE's MGX, The Information reports

AI tech leader and ChatGPT maker OpenAI is in talks for $40 billion funding with India's Reliance Industries, Saudi Arabia's Public Investment Fund (PIF) and existing shareholder United Arab Emirates' MGX, according to a report by The Information, citing sources.

They added that each investors could put in “at least hundreds of millions of dollars” in the fundraise, as the Microsoft-backed AI frontrunner looks to fuel its model development and ambitious infrastructure plan ‘Stargate’.

Invesment from India?

According to a Reuters report citing two sources, during his meeting with IT Minister Ashwini Vaishnaw in February, OpenAI CEO Sam Altman discussed India's plans to create a low-cost AI ecosystem.

Post that he was in the UAE, and reportedly discussed raising funds with MGX, the report added citing the same sources.

Besides these, The Information report added that OpenAI is also in talks for $100 million each from Founders Fund and Coatue. Overall, the company expects additional funding of around $17 billion in 2027, it added.

Reuters could not immediately confirm the report.

OpenAI, PIF, Reliance Industries, MGX and SoftBank did not immediately respond to queries, it added.

What is Stargate?

Stargate is a joint corporate venture led by SoftBank, along with OpenAI and Oracle, that aims to invest $500 billion in artificial intelligence (AI) infrastructure, with initial funding from the three companies, and Abu Dhabi state investor MGX.

It was announced by US President Donald Trump, in a White House press conference in January this year, along with SoftBank’s Chairman and CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle's Executive Chairman Larry Ellison.

Addressing reporters, Son, will serve as Stargate's chairman, said the JV will deploy $100 billion “immediately”, with a goal of increasing to “at least” $500 billion to build new infrastructure for OpenAI, including data centers and physical campuses. 

Besides the financing aspect, Arm Holdings Plc, Microsoft Corp. and Nvidia Corp. will provide technology, along with Oracle and OpenAI, Bloomberg had reported at the time.

(With inputs from Reuters and Bloomberg)