On Tuesday, a report published by The Information, OpenAI, the Microsoft-backed artificial intelligence company that created ChatGPT, is in the middle of talks with Saudi Arabian and Indian investors to raise more than $40 billion in new funding.
The key purpose of the proposed fundraising round, which is among the biggest in the tech sector in recent years, is to support the huge infrastructure project of OpenAI, codenamed “Stargate,” and hasten the expansion of its models. According to people that are related with the situation, the Japanese company SoftBank is in charge of the project.
The Public Investment Fund (PIF), a sovereign wealth fund in Saudi Arabia, Reliance Industries which is Indian, and MGX, a company located in the United Arab Emirates as well as existing shareholder, are among the investors taking part in the negotiations of OpenAI according to the reports. According to the study, hundreds of millions of dollars might be contributed by each of these possible donors.
Sam Altman, the CEO of OpenAI, has spoken with regional stakeholders at high levels in recent months. Altman met with India’s IT Minister earlier this year to talk about creating an affordable AI ecosystem in the nation. According to people who spoke to The Information, Altman also traveled to the United Arab Emirates to engage in conversations with MGX.
According to the sources, the company is also having talks with the Founders Fund as well as Coatue Management, both of which will probably make investment of at least $100 million. As OpenAI expands its infrastructure and research capacities, the same funding campaign may result in a future commitment of an additional $17 billion by 2027.
Demand for more potent computing resources has increased as a result of OpenAI’s rapid growth thanks to its generative AI tools, such as ChatGPT and DALL·E. Its multi-year-long Stargate infrastructure project, purportedly created in collaboration with Microsoft, intends to establish cutting-edge AI training facilities.
An important turning point in the global AI race, where nations and corporations compete to obtain influence in determining the direction of artificial intelligence technology, is the possible inflow of capital from Middle Eastern and South Asian investors.
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