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OpenAI in talks with UAE funds, BlackRock on $30B round
- OpenAI is in talks with Abu Dhabi's MGX, other UAE funds and BlackRock to anchor a $30 billion round, Bloomberg reported
bloomberg. - The roughly $1.4 trillion pre-money valuation is being offered as a set price without a lead investor, well above March's $852 billion mark
businesstimes. - OpenAI has pushed its IPO back to at least 2027, while existing backers Thrive Capital and Andreessen Horowitz have discussed joining the round
businesstimes.
OpenAI is talking with several investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, about anchoring a financing round of $30 billion for the ChatGPT maker, Bloomberg News reported Monday, citing people familiar with the matter. The UAE funds would invest together as a syndicate and have discussed putting in as much as $10 billion in total. BlackRock is also in talks to invest alongside them.businesstimes+1
The round would value OpenAI at about $1.4 trillion before the new money goes in, according to Bloomberg. That is well above the $852 billion valuation, including the new cash, from the $122 billion round OpenAI raised in March. The people told Bloomberg the fundraise is still going on and the details could change.businesstimes
An unusual structure
OpenAI has not picked a lead investor. Instead, it is presenting the $1.4 trillion pre-money valuation to investors as a set price, the people said. That departs from how venture rounds usually work: investment firms normally submit terms and negotiate with the company over who leads the deal.businesstimes
The company has also delayed plans for an initial public offering until at least 2027, citing its focus on AI safety work, Bloomberg has reported. OpenAI and BlackRock declined to comment, and MGX did not respond to requests for comment outside normal business hours.businesstimes
Familiar backers
OpenAI has also held talks with existing investors about joining the round. They include the University of California's endowment fund, Thrive Capital and Andreessen Horowitz. Thrive declined to comment, and Andreessen Horowitz and the University of California did not respond.businesstimes
MGX has invested in earlier rounds for both OpenAI and Anthropic. Bloomberg has reported that it raised close to $50 billion earlier this year to spend more on AI infrastructure and technology. The Next Web noted that MGX and BlackRock already run a $30 billion infrastructure vehicle together with Microsoft and Nvidia . It also said MGX is chaired by Sheikh Tahnoon bin Zayed Al Nahyan and holds a stake in xAI.thenextweb+1
Leading AI developers, OpenAI and Anthropic among them, have turned to wealthy investors in the Middle East to cover the large sums needed to build advanced AI systems and the infrastructure behind them.businesstimes
Sources (6)
- 1 OpenAI in Talks With UAE Funds, BlackRock for $30 Billion Round www.bloomberg.com
- 2 OpenAI in US$30 billion round talks with UAE funds, BlackRock www.businesstimes.com.sg
- 3 OpenAI is in talks with Abu Dhabi's MGX and BlackRock for a $30B round thenextweb.com
- 4 OpenAI Seeks at Least $30 Billion in Funding, Discusses Up to $10 Billion From UAE Investors en.bloomingbit.io
- 5 OpenAI In Talks With UAE Funds, Blackrock For $30 Billion Round - Bloomberg News www.tradingview.com
- 6 OpenAI seeks $30B funding at $1.4T valuation with UAE, BlackRock: Bloomberg cryptobriefing.com
