New Delhi: OpenAI, the company behind ChatGPT, is in discussions with several investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to help anchor a fresh $30 billion funding round, according to people familiar with the matter.
The fundraising talks also involve BlackRock Inc., which is considering participating alongside the UAE investment group. The discussions are still ongoing and the final structure of the deal could change, Bloomberg News reported.
The proposed funding round comes as OpenAI seeks to secure enormous amounts of capital to support its artificial intelligence development, computing requirements and infrastructure expansion. The company is reportedly targeting a valuation of around $1.4 trillion in the new round.
UAE funds could invest up to $10 billion
According to people familiar with the discussions, the UAE investment funds could collectively contribute as much as $10 billion to the proposed financing round.
The funds are expected to form a syndicate to invest in OpenAI, with MGX emerging as one of the key participants. Abu Dhabi-based MGX has previously invested in OpenAI and other major AI companies, including Anthropic.
The potential participation highlights the growing role of Middle Eastern sovereign and investment funds in financing the global artificial intelligence industry. AI companies are requiring increasingly large amounts of capital to build data centres, secure advanced computing capacity and develop increasingly sophisticated models.
BlackRock is also in talks to participate in the round alongside the UAE funds, according to the report. However, OpenAI and BlackRock declined to comment, while representatives of MGX did not immediately respond to requests for comment.
OpenAI targets $1.4 trillion valuation
OpenAI is seeking to raise at least $30 billion at a pre-money valuation of approximately $1.4 trillion, according to the report.
The proposed valuation would represent a substantial increase from the company’s most recent major financing. In March 2026, OpenAI completed a $122 billion funding round at an $852 billion valuation, including the money raised. The round included major investments from Amazon, Nvidia and SoftBank, along with participation from several other institutional investors.
The new fundraising effort follows reports that OpenAI has pushed back its plans for an initial public offering (IPO) until at least next year. The company is continuing to focus on AI safety and the expansion of its technology and infrastructure before entering public markets, according to the latest report.
Existing investors also considering participation
OpenAI is also speaking with several existing and institutional investors about the proposed financing.
The company has held discussions with the University of California’s endowment fund, an existing investor, about taking part in the new round. Existing backers Thrive Capital and Andreessen Horowitz have also reportedly discussed investing.
Thrive Capital declined to comment, while representatives for Andreessen Horowitz and the University of California did not respond to requests for comment, according to Bloomberg.
The involvement of existing investors could help OpenAI bring together the sizeable capital required for its next phase of expansion. At the same time, the company is seeking to attract large institutional investors capable of supporting its long-term infrastructure and AI development requirements.
MGX strengthens its AI investment push
MGX has emerged as an important investor in the global AI ecosystem. The Abu Dhabi-based investment firm has already backed OpenAI and Anthropic and has been increasing its focus on artificial intelligence infrastructure and technology.
According to the report, MGX raised close to $50 billion earlier this year to accelerate spending on AI infrastructure and technology.
The increased participation of Middle Eastern investors reflects the growing financial requirements of the AI sector. Leading AI developers are competing for access to advanced chips, data centres, energy and specialised talent, making access to large pools of capital increasingly important.
OpenAI sets unusual terms for new round
The proposed financing also has an unusual feature. OpenAI is reportedly presenting its $1.4 trillion pre-money valuation as a set price to prospective investors even though the company has not yet settled on a lead investor.
In a conventional venture capital funding round, investors typically submit financing terms and negotiate with the company over valuation and other conditions, including which investor will lead the round.
The approach underlines OpenAI’s strong fundraising position and the intense investor interest surrounding the artificial intelligence industry. However, the talks remain private and could change before any final agreement is reached.
AI companies turn to Middle Eastern capital
OpenAI is not the only major AI company seeking deep-pocketed investors in the Middle East. Companies such as Anthropic have also attracted significant backing from Middle Eastern investment groups as the cost of developing and operating advanced AI systems continues to rise.
For OpenAI, the proposed $30 billion round would provide additional financial resources at a critical stage of its expansion. The company is simultaneously working to increase AI capabilities, expand computing infrastructure and compete with rivals in an increasingly crowded market.
If completed, the financing would further strengthen OpenAI’s position among the world’s most highly valued private technology companies and could set another benchmark for the scale of investment flowing into the AI sector.