OpenAI in talks for $30bn round with UAE funds and BlackRock
In short
OpenAI is in talks with several UAE investment funds, including Abu Dhabi-based MGX, and with BlackRock over participation in a new funding round of $30bn, according to people familiar with the matter. The UAE funds would invest as a consortium, with combined contributions discussed at up to $10bn. Talks are still under way and terms may change.
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OpenAI is in talks with several investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, and with BlackRock Inc. over participation in a new funding round of $30bn, according to people familiar with the matter cited by the outlets. The reports, which describe the discussions as continuing, say the terms may still change. [ 1 , 2 , 3 , 4 , 5 ]
The UAE funds would take part as an investment consortium, the people said, with combined contributions discussed at up to $10bn. IT Home, citing Bloomberg, reported that OpenAI wants the UAE funds to act as cornerstone investors in the round. Separate reports by CLS and Jiemian said BlackRock is also negotiating to join, with one account saying it would invest alongside the consortium. [ 2 , 3 , 4 , 5 ]
Existing investors are also in the discussions. CLS reported that OpenAI has held financing talks with Thrive and Andreessen Horowitz, and IT Home said both are weighing additional investment. IT Home added that OpenAI has approached its existing investor, the University of California endowment, about joining the round. [ 1 , 5 ]
According to IT Home, citing Bloomberg, OpenAI has set a fixed pre-money valuation of $1.4tn and given it directly to investors, unlike conventional venture financing in which investors submit terms and the lead investor is negotiated afterwards. Jiemian, citing an earlier media report, said OpenAI is seeking at least $30bn at a pre-money valuation expected to reach about $1.4tn. No lead investor has been settled, according to IT Home. [ 3 , 5 ]
IT Home also reported that OpenAI has deferred a planned initial public offering to at least next year, saying the company's focus is currently on artificial intelligence safety work. It reported that OpenAI's previous round took place in March, raising $122bn at a valuation of $852bn, and that MGX had previously joined funding rounds for OpenAI and Anthropic and raised close to $50bn earlier this year for AI infrastructure. The report said leading AI companies have been seeking capital from well-funded Middle Eastern investors to meet the large spending requirements of developing and operating frontier AI software. [ 5 ]
Why it matters
The round would tie one of the largest AI developers to Middle Eastern state-linked capital and to a major US asset manager. The documents describe the discussions as part of a broader pattern of frontier AI companies seeking well-funded investors to meet the large capital needs of developing and running AI software. For readers outside the UAE and the US, the size of the round and the fixed $1.4tn pre-money valuation are a gauge of how AI financing is being priced.
Key facts
- OpenAI is in talks over a funding round of $30bn, with the discussions still in progress and terms subject to change [ 2 , 3 , 4 , 5 ]
- Several UAE investment funds, including Abu Dhabi-based MGX, are negotiating possible participation and would join as a consortium [ 2 , 3 , 4 , 5 ]
- The UAE funds have discussed combined investment of up to $10bn [ 2 , 3 , 4 , 5 ]
- BlackRock is also in talks to take part alongside the consortium [ 1 , 2 , 3 , 4 , 5 ]
- Existing investors Thrive Capital and Andreessen Horowitz are discussing additional investment, and OpenAI has approached the University of California endowment [ 1 , 5 ]
- OpenAI has set a fixed pre-money valuation of $1.4tn for the round, and has deferred a planned IPO to at least next year to focus on AI safety work, according to Bloomberg [ 5 ]
- OpenAI's previous round was in March, raising $122bn at an $852bn valuation, according to the report [ 5 ]
Confirmed by several sources
- OpenAI is negotiating a $30bn funding round [ 1 , 2 , 3 , 4 , 5 ]
- UAE funds including MGX are in talks to participate as a consortium, with up to $10bn discussed [ 2 , 3 , 4 , 5 ]
- BlackRock is also in talks to join the round [ 1 , 2 , 3 , 4 , 5 ]
- The financing is still in progress and the terms may change [ 2 , 3 , 4 , 5 ]
Still unclear
- Who will lead the round IT Home reports that, unusually, no lead investor has been settled and OpenAI has already given investors a fixed pre-money valuation, with the lead usually decided after terms are submitted.
- Whether the $10bn figure for the UAE funds and BlackRock's participation are final The $10bn is described as an amount under discussion and the reports say terms may still change; BlackRock's planned investment size is not given.
- When the round would close or how the UAE consortium would be structured No closing date or consortium composition beyond MGX is stated in the documents.
What local media are saying
Timeline, local time
- CLS reports that OpenAI has held funding talks with Thrive and Andreessen Horowitz and is in discussions with UAE funds and BlackRock over a $30bn round [ 1 ]
- CLS reports that several UAE funds including MGX are negotiating participation as a consortium, discussing up to $10bn, and that BlackRock is also in talks [ 2 ]
- Jiemian carries the same account and adds the earlier report of a round of at least $30bn at a pre-money valuation of about $1.4tn [ 3 ]
- 36Kr reports the talks, citing anonymous sources [ 4 ]
- IT Home, citing Bloomberg, reports MGX as a possible cornerstone investor, the fixed $1.4tn pre-money valuation, the IPO deferral and the March round [ 5 ]