United Arab Emirates fund in talks to invest in OpenAI

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Subscribe to enjoy similar stories. A United Arab Emirates state-backed company is in talks to invest in OpenAI as part of a multibillion-dollar fundraising round for the startup behind ChatGPT. MGX, which the U.A.E.

created earlier this year to invest in artificial intelligence projects, hasn’t determined the size of a potential investment in OpenAI, according to people with knowledge of the discussions. If the investment is completed, it would bring the Middle Eastern nation closer to one of the world’s leading AI companies and one of the most valuable private startups in the U.S. OpenAI is in talks to raise as much as $6.5 billion in a funding round that would value it at $150 billion, according to people familiar with the matter.

The investment terms are still being completed, the people said. If the startup ends up valued at $150 billion, that would nearly double its $86 billion valuation last year—a sign of continued investor enthusiasm for the potential of generative AI and OpenAI’s leading role in the space. Venture-capital firm Thrive Capital has committed $1 billion and will lead the round, while Microsoft, Apple and Nvidia are in talks to also invest, The Wall Street Journal previously reported.

Bloomberg previously reported on OpenAI’s potential new valuation. Separately, OpenAI chief executive Sam Altman has told investors his company is considering changing its corporate structure to be more attractive to them. OpenAI is currently a nonprofit that has a for-profit subsidiary through which investors can receive a capped share of its profits—an unusual setup.