OpenAI in $30 Billion Round Talks With UAE Funds and BlackRock

OpenAI is negotiating with multiple investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to anchor a $30 billion financing round. The UAE funds have discussed contributing as much as $10 billion altogether, forming a syndicate to support the ChatGPT maker's capital needs.

BlackRock Inc. is also in discussions to participate in the round alongside the UAE syndicate. The fundraise is ongoing, and details remain subject to change, with OpenAI and BlackRock declining to comment on the specific negotiations.

Valuation and Investor Context

The company is targeting a raise of at least $30 billion at a pre-money valuation of approximately $1.4 trillion. This follows a $122 billion round completed in March at an $852 billion valuation. OpenAI has pushed back its initial public offering plans until at least next year, citing a continued focus on AI safety efforts.

Unlike typical venture rounds, OpenAI is presenting the $1.4 trillion valuation as a set price despite not yet having a lead investor. Existing backers, including Thrive Capital, Andreessen Horowitz, and the University of California endowment fund, have also discussed participating in the round.