Skip to content Skip to Search
Skip navigation

Saudi IT company invests $5m in OpenAI

OpenAI CEO Sam Altman was removed by the company board in November but returned four days later Reuters/Denis Balibouse
OpenAI CEO Sam Altman was removed by the company board in November but returned four days later
  • AI investment portfolio
  • OpenAI valued at $86bn
  • Talks with UAE’s G42

The Saudi IT company Al Moammar Information Systems has announced an investment of $5 million in the US artificial intelligence (AI) research company OpenAI. 

Al Moammar recently established a portfolio to invest in international companies in the field of artificial intelligence. 

Bloomberg reported in December that in early January OpenAI would complete a tender offer led by Thrive Capital that would allow employees to sell shares with a valuation of $86 billion. 

The report said that OpenAI was also in early talks to raise a fresh round of funding at a valuation at or above $100 billion and had discussed raising $8 billion and $10 billion for a new chip venture with the Abu Dhabi-based company G42. 

News reports over the past week have said OpenAI’s CEO, Sam Altman, is in discussions with Middle Eastern investors and chip fabricators including G42, Taiwan’s TSMC and Japan’s SoftBank Group. 

Al Moammar said in a Saudi stock market statement that its $5 million investment was obtained through a “private stock sale round of OpenAI employee shares tender offer, wherein the company was valued at $86 billion”. 

Its statement linked the deal, advised by Decisive Capital Management in Geneva, to the AI investment portfolio it announced earlier this month. 

Al Moammar, a listed company formed in 1996, said on 11 January that it would allocate SAR40 million ($10.7 million) for a portfolio to invest in AI companies to “take advantage of growth opportunities in this promising field”. 

The consultancy company PwC’s 27th Annual CEO survey found that three out of four CEOs in the Middle East believe generative AI will significantly change the way they do business over the next three years. 

A quarter of regional CEOs said they expect GenAI will create more jobs and two out of three predicted it would help increase revenue.

Latest articles

Opec Secretary General Haitham Al Ghais says peak oil 'is not on the horizon'

Upstream oil and gas ‘needs more annual investment’

Annual capital expenditure for exploration and production in the upstream sector of the oil industry needs to increase by 22 percent by 2030 because of growing demand and cost inflation, experts say. A cumulative $4.3 trillion needs to be invested between 2025 and 2030, according to a report by the International Energy Forum (IEF) and […]

Rothschild Saudi

Edmond de Rothschild to run funding vehicle for Saudi projects

The Edmond de Rothschild Group is establishing a funding vehicle for infrastructure projects in Saudi Arabia along with the local firm SNB Capital, as part of a deal in which the Swiss investment bank will set up offices in the country.  Saudi Arabia’s massive economic diversification programme has run into financial obstacles as it faces […]

Turkey foreign property sales

Foreigners turning back on Turkish real estate

Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […]

2KEY8G1 Emirates Airline Airbus A380 aircraft landing. Aerial view of Emirates Airlines A380-800 airplane. An Emirates plane coming in to land at LAX; a spokesperson for Emirates said the contraventions were for safety reasons

US fines Emirates for operating in prohibited airspace

Emirates has been fined $1.5 million by the US Transportation Department for operating flights carrying JetBlue Airways’ JBLU.O designator code in prohibited airspace. The transportation department said that between December 2021 and August 2022, Emirates operated a significant number of flights carrying the JetBlue Airways code between the United Arab Emirates and the United States […]