OpenAI in Talks for $30 Billion Round at $1.4 Trillion Valuation

Summary

• OpenAI is seeking at least $30 billion from UAE funds, BlackRock and others, Bloomberg reported.
• The ChatGPT maker last raised $122 billion in March at an $852 billion valuation.
• A $1.4 trillion price would lift OpenAI's value by roughly 64% in months.

The latest

A syndicate of United Arab Emirates investment funds, including Abu Dhabi-based MGX, is in talks to anchor a $30 billion financing round for OpenAI, people familiar with the matter told Bloomberg. The Emirati funds have discussed contributing as much as $10 billion combined. BlackRock is separately in discussions to join alongside them, according to the same people.

Details

• The target: OpenAI is looking to raise at least $30 billion at a valuation of about $1.4 trillion, according to Bloomberg's sources. The round is still in progress and its terms could change before closing, the people said, with no lead investor settled on so far.
• The pricing: Unlike a typical venture round, OpenAI is presenting the $1.4 trillion pre-money figure to investors as a set price rather than a negotiated starting point, the people familiar said — an unusual posture for a company that has not yet named a lead backer for the deal.
• The Emirati bloc: The UAE funds would form a syndicate to invest together, according to Bloomberg. MGX is already an investor in earlier OpenAI rounds and has backed rival Anthropic. The report did not name the other Emirati funds in the discussions.
• MGX's firepower: MGX raised close to $50 billion earlier this year to accelerate spending on artificial intelligence infrastructure and technology, Bloomberg reported. A $10 billion syndicate commitment would represent a significant share of that pool concentrated in a single company.
• The last round: OpenAI most recently closed a $122 billion round in March at an $852 billion valuation, according to Bloomberg. The new price being floated to investors would mark an increase of roughly 64% over that mark in a matter of months.
• Other names: OpenAI has also held talks with the University of California's endowment fund, the people said. Existing backers Thrive Capital and Andreessen Horowitz have discussed putting money into the round, though their commitments were not specified.
• The IPO delay: OpenAI is pushing back plans for an initial public offering until at least next year, citing its focus on AI safety work, according to Bloomberg. The company has not set a revised timetable for a listing.
• BlackRock's role: The world's largest asset manager is in discussions to participate in the round alongside the Emirati syndicate, the people familiar said. The size of any BlackRock contribution was not disclosed.

Background

MGX was set up by Abu Dhabi as a dedicated artificial intelligence investment vehicle and has become one of the most active sovereign-linked backers of US AI companies, taking positions in both OpenAI and Anthropic.

Between the lines

Setting a fixed $1.4 trillion price before naming a lead investor shifts the usual balance of a private round: OpenAI is asking backers to accept its number rather than discover one. The combination of a delayed IPO and a $30 billion private raise suggests the company expects to fund its next phase without public markets, with sovereign capital carrying much of the load.

What's next

Watch whether a lead investor emerges and whether the $1.4 trillion price holds as terms are finalized, plus any confirmation of the size of the MGX and BlackRock commitments.

Source: Bloomberg