OpenAI eyes $50B funding from Middle East, prepares first AI device

OpenAI is in talks with Middle Eastern sovereign wealth funds to raise fresh capital in a massive new funding round that could reach $50 billion.

Discussions are ongoing, and no final terms have been signed yet. 

CEO Sam Altman is currently in the United Arab Emirates leading the discussions, and the deal could close in the first quarter of the year.

Since launching ChatGPT in 2022, OpenAI has grown rapidly, attracting billions in investments from Microsoft, as demand for AI tools has surged. 

Last year, OpenAI raised $40 billion in a funding round led by SoftBank and later completed a $6.6 billion share sale, valuing it at $500 billion.

OpenAI’s first AI device
The ChatGPT maker is also moving closer to launching its first hardware device, with a potential reveal expected in the second half of 2026. Chief Global Affairs Officer Chris Lehane shared the update in Davos.

Interest in the device grew after Altman acquired a startup founded by former Apple design chief Jony Ive. While details remain limited, reports suggest the product could be small, screen-free, and possibly wearable.

Altman has described it as simpler to use and more peaceful than a smartphone, signaling a shift away from screen-heavy technology.

Despite early failures like the Humane AI Pin, the broader AI device market continues to attract strong interest.