OpenAI eyes India, Saudi, UAE backing in $40 billion AI funding round

The AI firm is in talks with Reliance, Saudi PIF, and UAE's MGX to raise billions for its Stargate project and next-gen models, with SoftBank leading the effort

ChatGPT creator OpenAI is in discussions with Saudi Arabia’s Public Investment Fund (PIF), India’s Reliance Industries, and existing investor MGX from the United Arab Emirates as part of its ongoing $40 billion fundraising efforts, according to a report by The Information on Wednesday.

 

The report said these investors could each contribute hundreds of millions of dollars to the round.

 

Stargate project and next-gen AI models drive funding push

 

The fundraising drive is aimed at supporting OpenAI’s next phase of model development and the ambitious infrastructure initiative dubbed “Stargate”. The effort is being led by Japanese investment giant SoftBank.     

 

 

  Earlier this year, OpenAI CEO Sam Altman held a meeting with Union Minister Ashwini Vaishnaw to discuss the country’s plans for a low-cost AI ecosystem. Following that, Altman reportedly intended to visit the UAE for further discussions with Abu Dhabi-based MGX about potential investments, Reuters reported.

 

More global investors approached, $17 bn target by 2027

 

The Information report also noted that OpenAI has approached other potential investors such as Coatue Management and Founders Fund, seeking at least $100 million from each. Additionally, the company is projecting to secure a further $17 billion in funding by 2027.

 

India poised to lead global AI stack, says Jason Kwon

 

India is fast becoming a major force in the global artificial intelligence (AI) landscape, according to OpenAI’s Chief Strategy Officer, Jason Kwon. He highlighted that India now has the second-largest user base of ChatGPT and is among the top 10 countries worldwide in terms of developers building on OpenAI’s APIs.

 

“With the vast and growing pool of AI talent, a vibrant entrepreneurial spirit, and strong government support to expand the critical infrastructure, India is poised to succeed at all layers of the AI stack,” Kwon said during his visit to India last week.

 

OpenAI Academy India expands AI education and skills

 

Marking a significant milestone in its international outreach, OpenAI launched the OpenAI Academy India — the company’s first overseas expansion of its educational initiative. The programme aims to support the IndiaAI Mission’s “FutureSkills” pillar by widening access to AI training across multiple segments including students, developers, educators, civil servants, nonprofit leaders, and small business owners, the company announced.   

 

New API grants fuel AI tools for social good in India

 

Last week, OpenAI also announced a new round of API credit grants for 11 Indian non-profit organisations. The beneficiaries include Rocket Learning, Noora Health, and Udhyam, among others. The initiative is aimed at fostering the development of AI-powered tools that can drive social good.

 

“Over the last year, the India cohort has developed and deployed AI-powered applications across sectors, including healthcare, education, agriculture, disability inclusion, and gender equity, creating a tangible and measurable impact in underserved communities,” the company said in a statement.

 

AI-powered apps transform early learning and patient care

 

As part of OpenAI’s global support program under the Academy, selected organisations receive hands-on technical assistance, cohort-based learning opportunities, and early access to OpenAI’s tools.

 

In India, Rocket Learning uses generative AI and WhatsApp to deliver personalised early learning experiences for parents and daycare providers. Noora Health works to improve patient outcomes by sharing life-saving information with caregivers and families.