OpenAI Eyes Saudi and Indian Tycoons in $40B Mega Funding Push

Sam Altman-led OpenAI is reportedly in talks with Saudi Arabia’s Public Investment Fund (PIF) and India’s Reliance Industries (IN:RELIANCE), as part of its $40 billion funding push. The company has also spoken with existing investor United Arab Emirates’ MGX, for the capital raise. The funds would be directed toward model development and President Donald Trump’s multi-billion-dollar Stargate project. The news was first reported by The Information, citing people familiar with the matter.

Japan’s SoftBank (SFTBY) is leading the fundraising efforts. The potential investors could each pour in hundreds of millions of dollars. Additionally, the ChatGPT maker has approached Coatue and Founders Fund to raise at least $100 million from each as part of the funding. Earlier this year, Altman met with India’s IT Minister to explore plans for creating a low-cost AI ecosystem in the country. The CEO was also expected to visit the UAE to discuss fundraising with MGX.

AI’s Insatiable Hunger for Capital

OpenAI’s recurrent fundraising efforts highlight the artificial intelligence (AI) sector’s substantial capital requirements for training and developing advanced AI models. The report noted that OpenAI seeks to raise an additional $17 billion in 2027. OpenAI has come a long way in its capital-raising efforts, progressing from its first raise of $1 billion in 2015 to $40 billion raised in March 2025. The Microsoft (MSFT)-backed company was valued at $300 billion in post-money valuation during the last round.

Remarkably, OpenAI recently hit $10 billion in annual recurring revenue, driven by sales of the company’s consumer products, ChatGPT business solutions, and its application programming interface (API). The company has set a lofty target of reaching $125 billion in annual revenue by 2029.

OpenAI is also an integral part of the Stargate project, alongside Masayoshi Son-led SoftBank, Oracle (ORCL), and Nvidia (NVDA). The project aims to raise and invest up to $500 billion in the U.S. to build specialized data centers with custom AI chips and advanced cooling systems.

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