OpenAI is in early discussions with major investors about a new funding round that could value the ChatGPT maker at around $1.2 trillion, putting the company at the centre of an increasingly global race for AI capital and infrastructure.
The talks, first reported by the Financial Times, come just months after OpenAI closed a $122 billion funding round that valued the company at $852 billion. The latest discussions were initiated by investors, according to the reports, and the size and valuation could change before any deal is finalised. OpenAI has declined to comment.
The potential fundraise also has a significant Gulf dimension, as the UAE has emerged as one of OpenAI’s key international partners and a major centre for AI infrastructure investment.
In May 2025, OpenAI announced Stargate UAE with Abu Dhabi-based G42, Oracle, NVIDIA, SoftBank and Cisco. The project includes a 1-gigawatt Stargate cluster within a planned 5-gigawatt UAE-US AI campus in Abu Dhabi, with the first 200 megawatts originally expected to come online in 2026. OpenAI said the partnership would help the UAE deploy its technology across sectors including government, energy, healthcare, education and transportation.
The UAE’s role extends beyond infrastructure. Abu Dhabi-based MGX, an AI-focused investment firm founded by Mubadala and G42, is already an investor in OpenAI. The Information has also reported that OpenAI discussed its earlier financing with Saudi Arabia’s Public Investment Fund and the UAE’s MGX, although those discussions do not establish that either fund is participating in the latest potential $1.2 trillion round.’
Gulf’s AI bet
The Gulf’s growing role in AI is therefore increasingly visible on both sides of the equation: sovereign and institutional capital is flowing into AI companies, while Gulf states are simultaneously investing in the computing infrastructure needed to run increasingly powerful models.
The UAE is also revising plans for its large AI campus following attacks on US-linked technology infrastructure in the region. Reuters reported last week that the original Abu Dhabi campus design is being reconsidered in favour of a network of facilities with additional security and resilience measures.
For OpenAI, the need for capital is closely linked to the enormous cost of developing and operating frontier AI systems. The company said its March funding would help expand compute, research, products and access to AI.
Despite speculation about a public listing, CEO Sam Altman has said OpenAI will not go public in 2026, citing concerns about AI safety. The company and rival Anthropic are also advocating stronger regulatory safeguards around the development of increasingly powerful AI systems.
A $1.2 trillion valuation would mark a substantial increase from OpenAI’s $852 billion valuation in March. For the Gulf, however, the development is also part of a broader shift in which the region is seeking a role not merely as a source of capital for AI, but as a destination for the computing, data centres and sovereign AI capabilities underpinning the next phase of the industry.
