$10bn — Abu Dhabi funds in talks for a share of OpenAI's $30bn round

Summary

• OpenAI is seeking $30 billion from investors before its delayed stock market debut, Bloomberg reported.
• Abu Dhabi funds including MGX are discussing contributing up to $10 billion, with BlackRock also in talks.
• The round would value OpenAI near $1.4 trillion, up from $852 billion in March.

The latest

OpenAI is seeking $30 billion in fresh capital ahead of an initial public offering it has now pushed back to next year at the earliest, Bloomberg reported. Abu Dhabi investment funds, among them MGX, are discussing pooling as much as $10 billion to anchor the financing — a third of the target. The round would value the ChatGPT maker at roughly $1.4 trillion.

Details

• The valuation jump: The $1.4 trillion figure compares with $852 billion at OpenAI's March fundraising, according to Bloomberg. That earlier round brought in $122 billion, making the implied gain in company value over a matter of months larger than the entire sum raised at the time.
• The Emirati share: Abu Dhabi investment funds, including MGX, are in discussions to pool up to $10 billion, Bloomberg reported. That would cover roughly a third of the $30 billion OpenAI is seeking and place the UAE among the largest single sources of capital in the round.
• MGX's position: The Abu Dhabi fund is not a newcomer to the sector. MGX has already invested in OpenAI and in rival Anthropic, giving it exposure on both sides of the competition between the two leading US developers of large language models.
• BlackRock in talks: The world's largest asset manager is also discussing participation in the financing, according to Bloomberg. Its involvement would widen the round beyond sovereign and venture money into mainstream institutional investment ahead of a public listing.
• Existing backers: Thrive Capital, Andreessen Horowitz and the University of California's endowment fund — all current OpenAI investors — have discussed putting money into the new round, Bloomberg reported, a sign the company is leaning on its established base as well as new entrants.
• Terms not final: The structure of the round could still change, according to Bloomberg. No closing date has been disclosed, and the identities of all participating Abu Dhabi funds beyond MGX have not been named.
• The IPO delay: OpenAI has postponed its initial share sale until at least next year, citing its focus on AI safety. The $30 billion private round would carry the company through that delay without exposing it to public market scrutiny in the interim.
• The existing relationship: Emirati AI group G42, led by chief executive Peng Xiao, signed a partnership agreement with OpenAI in 2023, according to Emirates News Agency, establishing ties between the company and Abu Dhabi's technology sector before the current funding discussions.

Between the lines

A $10 billion Emirati contribution to a $30 billion round would convert Abu Dhabi from partner to anchor investor in the most valuable private AI company. MGX's parallel stakes in OpenAI and Anthropic suggest a strategy of buying into the sector rather than backing a single winner — a position that carries less risk if the competition narrows to those two.

What's next

Watch for confirmation of the round's final size and participants, any disclosed closing date, and whether OpenAI sets a firmer IPO timeline after citing AI safety as the reason for the delay.

Source: Bloomberg, Emirates News Agency