OpenAI Eyes $40B Fundraise with Backing from Saudi PIF, Reliance, and SoftBank

OpenAI is reportedly in discussions with major global investors, including Saudi Arabia’s Public Investment Fund (PIF) and India’s Reliance Industries (NSE:RELI), as it seeks to raise up to $40 billion in fresh funding, according to The Information. The move aims to fuel the AI firm’s ambitious infrastructure expansion under its $500 billion “Project Stargate” initiative in the U.S.

The Microsoft-backed company is also engaging existing stakeholders such as MGX, the United Arab Emirates’ tech-focused investment arm, for participation in the round. Each investor could contribute hundreds of millions of dollars, the report added.

Venture capital firms Coatue Management and Founders Fund are also in talks to invest at least $100 million each as part of the massive fundraising effort. The push comes amid OpenAI’s strategic pivot toward building out advanced artificial intelligence capabilities and infrastructure on a national scale.

SoftBank (OTC:SFTBY), which has significantly increased its investment in OpenAI this year, is reportedly playing a key role in Project Stargate, positioning itself as a lead partner in the initiative. The Japanese conglomerate has been aggressively expanding its AI portfolio across multiple markets.

OpenAI’s popularity continues to surge with ChatGPT—its flagship AI chatbot—being used by hundreds of millions of people every week. As AI adoption grows rapidly worldwide, the company’s capital raise is seen as a critical step in staying ahead in the increasingly competitive artificial intelligence race.

The funding, if secured, would mark one of the largest private investment rounds in the AI space to date, reinforcing OpenAI’s position as a global leader in artificial intelligence development.