CapitalMiddle East & Africa

​OpenAI in Talks With UAE Funds, BlackRock for $30 Billion Funding Round

Credited to TheElec · thelec.net

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​OpenAI is pursuing a major fundraising effort targeting sovereign wealth funds in the United Arab Emirates (UAE) and the world’s largest asset manager, BlackRock, as it pushes back its initial public offering (IPO) to next year. The company appears to be turning to the Middle East’s deep pool of oil wealth to cover massive infrastructure and technology development costs.

On Oct. 6 local time, Bloomberg reported, citing people familiar with the matter, that OpenAI is in talks with several major UAE investment funds, including Abu Dhabi-based technology investment firm MGX, to raise a total of $30 billion in a new funding round. MGX has previously participated in funding rounds for OpenAI and Anthropic. According to THE ELEC, MGX raised about $50 billion earlier this year to accelerate investment in AI infrastructure and core technologies.

​OpenAI is valuing itself at about $1.4 trillion and is seeking to raise at least $30 billion. The company’s most recent funding round was in March, when it raised $122 billion at a valuation of $852 billion.

​The UAE funds are discussing forming a consortium to participate in the funding round and are considering contributing as much as $10 billion of the total investment, according to people familiar with the matter. BlackRock is also in talks to join the funding round alongside the consortium. OpenAI, BlackRock, and MGX did not respond to requests for comment.

Altman has said that taking OpenAI public would expose the company to short-term stock-market valuations and could influence decisions on AI safety, calling an IPO in 2026 premature as the company focuses on technology development and responding to government regulation.

Boomberg reported that the latest funding round differs from the typical venture-capital funding process. Normally, a selected lead investor presents a valuation and proposes specific investment terms before negotiating with the company. OpenAI, however, is leveraging its dominant market position to set its pre-money valuation at $1.4 trillion and present that figure to potential investors as a fixed price.

​Meanwhile, ChatGPT is currently running advertising services in more than 60 markets worldwide, with annual recurring revenue (ARR) from the business reportedly exceeding $1 billion.

Original · TheElec

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