OpenAI is in talks to raise up to USD 30 billion in fresh funding led by UAE investors alongside US investment firm Coatue, according to CNBC as reported by EnterpriseAM. The ChatGPT developer is targeting a pre-money valuation of USD 1.25 trillion, down from an earlier pitch of USD 1.4 trillion. The transaction discussions also include securing additional computing capacity within the UAE.
At full capacity, the UAE's planned artificial intelligence campus could consume electricity equivalent to a quarter of current national demand, according to The National. Abu Dhabi is developing a 5-gigawatt AI campus featuring the 1-gigawatt Stargate UAE cluster alongside international partners. The massive electricity load poses significant challenges for power generation, cooling, and grid management.
A report from the Bloomsbury Intelligence and Security Institute indicates Gulf states have allocated over $250 billion for AI and digital ecosystems. Regional computing capacity is projected to expand from 1 gigawatt in 2025 to 3.3 gigawatts by 2030. The analysis highlights the challenge of balancing Western semiconductor compliance with critical tech ties to China.
Construction on more than USD 100 billion in AI infrastructure projects across the UAE and Saudi Arabia is continuing without broad stoppages, EnterpriseAM reported. However, rising insurance premiums, supply chain frictions, and regional security threats are altering project economics. Western hyperscalers and regional firms face potential headwinds as Iranian officials threaten retaliatory measures against regional data assets.
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