OpenAI Taps Saudi and Indian Tycoons for $40 Billion in Funding

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 a new $40 billion funding push.

Privately held OpenAI has reportedly 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.

Japan’s SoftBank (SFTBY) is leading the fundraising efforts. The potential investors could each pour in hundreds of millions of dollars. Additionally, OpenAI, maker of ChatGPT, 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 artificial intelligence (AI) ecosystem in the country. The CEO was also expected to visit the UAE to discuss fundraising with MGX.

AI Capital Needs

OpenAI’s recurrent fundraising efforts highlight the artificial intelligence (AI) sector’s substantial capital requirements for training and developing advanced artificial intelligence models. The report noted that OpenAI is seeking 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.

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.

Which Is the Best AI Stock?

We used TipRanks’ Stock Comparison Tool for Best Artificial Intelligence Stocks to determine which stock is most favored by analysts. Currently, Microsoft, Meta Platforms (META), Alphabet (GOOGL), Micron (MU), Amazon (AMZN), and Nvidia have earned Wall Street’s “Strong Buy” consensus rating, with NVDA stock offering the highest upside potential.