OpenAI eyes Middle Eastern and Indian money for Stargate project

OpenAI, the company behind ChatGPT, is looking to raise billions of dollars from investors in the Middle East and India, according to The Information. 

The report said that the AI company has spoken to Saudi Arabia’s Public Investment Fund (PIF), India’s Reliance Industries, and existing shareholder United Arab Emirates’ MGX about its $40 billion financing.

The money would help fund its bold new project called Stargate — a plan to build the infrastructure needed to power the next generation of AI.

The investors could each contribute at least hundreds of millions of dollars, the report said, citing people familiar with the fundraising effort.

OpenAI is seeking to raise more capital to support its model development and its ambitious infrastructure plan, Stargate, with the financing round being led by SoftBank.

Earlier this year, OpenAI CEO Sam Altman met with India’s IT Minister and discussed the country’s plans to create a low-cost AI ecosystem. Following that meeting, Altman also had plans to visit the UAE to discuss raising funds with Abu Dhabi-based investment group MGX, according to two sources with knowledge of the matter.

The Microsoft-backed startup has also held talks to raise at least $100 million each from Coatue and Founders Fund as part of the same fundraising round, The Information report added. The company also expects to secure an additional $17 billion in 2027.

Reuters could not immediately verify the report.

OpenAI, PIF, Reliance Industries, MGX and SoftBank did not immediately respond to Reuters’ requests for comment.