OpenAI is in discussions with sovereign wealth funds in the Middle East as it explores raising capital for a new multibillion-dollar funding round, according to people familiar with the matter. The round is expected to total about $50 billion, though the final amount and terms remain subject to change, and no agreements have been signed.
Chief Executive Officer Sam Altman is currently in the United Arab Emirates participating in the talks, the source said. The funding round is expected to close in the first quarter of the year. Bloomberg first reported the discussions, which were later confirmed by CNBC.
The talks highlight OpenAI’s continued reliance on large pools of global capital as it scales infrastructure, develops advanced AI models, and expands commercial offerings. Sovereign wealth funds in the Middle East have increasingly positioned themselves as major backers of technology and artificial intelligence, driven by regional strategies to diversify economies and build long-term technological leadership.
Track Record of Mega Rounds
OpenAI has emerged as one of the most heavily funded private technology companies in history. Last year, the company closed a $40 billion financing round led by SoftBank, the largest private tech funding round on record. That deal included participation from Microsoft, OpenAI’s largest strategic partner, along with investment firms Coatue, Altimeter, and Thrive.
In October, OpenAI also completed a $6.6 billion share sale that pushed its valuation to $500 billion, reflecting strong investor confidence in its growth trajectory and market position. The company has not publicly disclosed how proceeds from a new round would be allocated, but funding to date has supported model development, cloud infrastructure, talent expansion, and enterprise-focused product launches.
Commercial Growth and Capital Needs
OpenAI sparked the global AI boom with the launch of ChatGPT in late 2022 and has since become one of the fastest-growing commercial technology companies. ChatGPT has reached massive global adoption, while the company continues to roll out new model versions, developer tools, and enterprise products.
The scale of OpenAI’s operations has driven equally large capital requirements. Training frontier AI models requires significant computing resources, long-term cloud contracts, and specialized hardware, making access to deep-pocketed investors a strategic necessity.
