OpenAI is looking for another massive payday. The company behind ChatGPT is currently in talks with major investors in the Middle East to raise what could be its biggest funding round yet. Sources familiar with the discussions say the deal could reach a staggering $50 billion.
CEO Sam Altman is currently on the ground in the United Arab Emirates to lead the talks. He is meeting with leaders of sovereign wealth funds—massive pools of government-controlled capital—to secure the new investment. While nothing is official yet and the final numbers could still change, OpenAI hopes to close the deal by the end of March.
This new push for cash comes as OpenAI continues its lightning-fast growth. Ever since it released ChatGPT in late 2022, the company has burned through billions of dollars to build more powerful AI models and release new features. This won’t be the first time they’ve broken records, either. Just last year, SoftBank led a $40 billion investment in the startup, which was the largest private funding deal in tech history.
OpenAI followed that up in October with another $6.6 billion share sale. That move pushed the company’s total valuation to an incredible $500 billion. To put that in perspective, OpenAI is now worth more than many of the world’s oldest and most successful corporations.
Long-time investors like Microsoft have already poured billions into Altman’s vision. However, the cost of building the data centers and hardware needed for the next generation of artificial intelligence is truly massive. By turning to the Middle East, OpenAI is seeking partners with the deep pockets needed to stay ahead in an increasingly expensive AI race. If Altman pulls off this $50 billion round, it will solidify OpenAI’s spot as the most well-funded player in the tech world.
