Overview
- OpenAI is in talks with sovereign wealth funds in the Middle East for a new funding round of about $50 billion, with Sam Altman in the UAE for discussions and a potential close targeted in the first quarter, according to CNBC and Bloomberg.
- The company recently completed a $40 billion financing led by SoftBank and a $6.6 billion share sale that lifted its valuation to about $500 billion, while some reports suggest the new round could value it between $750 billion and $830 billion.
- OpenAI reported rapid growth with annualized revenue surpassing $20 billion in 2025 and compute usage up 9.5x since 2023, even as analysts cite extraordinary cash burn including a Microsoft-referenced quarterly loss and a Deutsche Bank projection of large cumulative negative cash flow.
- Veteran investor George Noble’s viral critique flagged internal strain, product reception concerns and senior departures, framing OpenAI as a cautionary case for AI investing, though his claims include unverified elements.
- Legal risk remains elevated with Elon Musk’s $134 billion lawsuit against OpenAI scheduled for a jury trial in April following a federal judge’s ruling to proceed.