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Economic Times
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OpenAI in talks to raise fresh funds from Saudi Arabia’s PIF, India’s Reliance Industries: The Information
- OpenAI is in talks with Saudi Arabia’s PIF, Reliance Industries, and UAE’s MGX for its ongoing $40 billion fundraising.
- The company aims to raise about $30 billion by December, potentially valuing it at around $260 billion.
- SoftBank is leading the fundraising round and has already purchased shares from employees worth around $240 million.
- SoftBank is expected to contribute three-fourths of the $30 billion instalment, with the rest to be raised from new investors.
- OpenAI is considering investments from Coatue Management and Founders Fund, along with discussions with PIF and other investors.
- Saudi Arabia’s PIF might directly invest in OpenAI, marking a departure from its previous tech investments through venture funds.
- OpenAI's CEO had met with Saudi Crown Prince Mohammed bin Salman during a visit to Riyadh.
- In India, OpenAI is exploring a product and sales partnership with Reliance, targeting distribution of AI offerings in the country.
- ChatGPT, an OpenAI product, has seen a significant increase in weekly active users, pushing the company's capital needs higher.
- OpenAI expects to spend $35 billion on servers between 2025 and 2027 to support existing products and $55 billion on developing new models.
- Completion of the fundraising round depends on a corporate restructuring by year-end, with potential consequences for SoftBank's commitment.
- OpenAI, SoftBank, MGX, and Oracle are collaborating on Stargate, a $500 billion initiative to build global AI data centers.
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