OpenAI in talks with Abu Dhabi’s G42 for up to $10bn funding

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US-based artificial intelligence company OpenAI has held talks to raise funding for a new chip venture with Abu Dhabi-based G42, Bloomberg reported, citing informed sources.

The AI startup has discussed raising between $8 and $10 billion from G42, the news agency said, adding that it was unclear whether the chips venture and wider company funding efforts were related.

In October, G42 partnered with OpenAI, the research and development company behind ChatGPT, to develop AI in the UAE and regional markets.

The partnership aims to leverage OpenAI’s generative AI models across sectors where G42 already has expertise, including financial services, energy, healthcare and public services. 

“Our partnership with OpenAI transcends technological synergy; it’s a convergence of value and vision,” G42 group CEO Peng Xiao added.

Sam Altman, co-founder and CEO of OpenAI has previously praised the UAE for being ahead of the curve on the development of AI.

In a visit to Abu Dhabi in June, he spoke highly of the Emirates’ “desire, commitment and willingness” to explore the technology. 

“I’m hopeful that the region can play a central role in this global conversation,” he added.

Bloomberg also reported that OpenAI was in early discussions to raise a fresh round of funding at a valuation at or above $100 billion, making it one of the world’s most valuable startups.

Investors potentially involved in the fundraising round have been included in preliminary discussions, but the funding terms, valuation and timing haven’t yet been finalised.