OpenAI in Talks to Raise Massive $7 Bn, Valuing It More Than SpaceX, Uber and Goldman Sachs

OpenAI is reportedly in discussions with the UAE's investment fund MGX for a significant fundraising round. The aim is to raise up to $7 billion, which would potentially value OpenAI at $150 billion. This funding is part of OpenAI's broader strategy to enhance its AI capabilities and infrastructure, including developing its own AI processors.

MGX Investment Fund is a UAE-based investment fund involved in significant financial activities. It is a significant investment fund launched by Abu Dhabi, aimed at accelerating the development and adoption of artificial intelligence (AI) and advanced technologies.

MGX is backed by Mubadala Investment Company and G42, a global AI and cloud computing firm.

This influx of capital will likely be used to further develop OpenAI’s AI models and infrastructure, enhancing their capabilities and expanding their applications across various industries.

The potential $7 billion funding from the UAE’s MGX investment fund could significantly impact AI research in several ways. OpenAI could invest in more advanced computing infrastructure, including developing its own AI processors. This would enable faster and more efficient AI model training and deployment.

With increased funding, OpenAI can attract top talent from around the world, fostering innovation and accelerating research in AI.

OpenAI’s potential valuation of $150 billion places it among the most valuable tech companies globally.

ByteDance, the parent company of TikTok, is valued at around $225 billion, making it one of the highest-valued private tech companies. Elon Musk’s SpaceX is valued at approximately $150 billion, similar to OpenAI’s potential valuation. Besides, OpenAI’s valuation would surpass that of Goldman Sachs, which is valued at around $120 billion. OpenAI’s valuation would also be higher than Uber’s, which is valued at about $90 billion.

About MGX, it is a foundational partner of Mubadala, which has been a significant investor in AMD, helping to transform it into a leading semiconductor company.

Global Foundries, one of the world’s top semiconductor manufacturing companies, is another major investment by Mubadala.

The fund is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, with a board that includes prominent figures like Khaldoon Khalifa Al Mubarak and Peng Xiao.

MGX aims to surpass $100 billion in assets under management, making it one of the largest AI-focused funds globally.

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