OpenAI's Sam Altman Looks To Raise Funds From Abu Dhabi's MGX Amid Increased Competition: Report

Sam Altman, CEO of OpenAI, is reportedly set to visit the United Arab Emirates this week to engage in fundraising discussions with Abu Dhabi-based investment firm MGX.

What Happened: Altman's visit has been confirmed by two sources, as per a report by Reuters. This visit comes at a pivotal time for OpenAI as it faces competition from China’s DeepSeek, a more affordable AI alternative.

Altman’s meeting with MGX follows a recent tour of Asia, where he announced a partnership with Japan’s SoftBank Group (OTC:SFTBY) for AI services. The UAE, striving to become a leader in AI, is investing heavily in the sector, competing with Qatar and Saudi Arabia.

Why It Matters: MGX was part of a $6.6 billion funding round for OpenAI that concluded in October. SoftBank is reportedly in discussions to lead a funding round of up to $40 billion for OpenAI, potentially setting a record for private company funding.

This round could value OpenAI at $300 billion. Additionally, President Donald Trump recently announced a joint venture, Stargate, involving OpenAI, SoftBank, and Oracle Corp. (NYSE:ORCL), with MGX participating.

Altman also visited India, meeting with the country's IT minister to discuss creating a low-cost AI ecosystem. OpenAI’s ChatGPT, launched in late 2022, has reached over 300 million weekly users but faces competition from DeepSeek’s cost-effective AI solutions.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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