A state-backed investment firm from the United Arab Emirates (UAE) is in talks to invest in OpenAI, the company behind the popular artificial intelligence chatbot ChatGPT.

Following the announcement of the development, the value of OpenAI-backed altcoin Worldcoin (WLD) rose by approximately 15%.

The potential deal is part of a multibillion-dollar fundraising round for the U.S.-based artificial intelligence startup, according to people familiar with the matter.

UAE’s MGX, an investment firm set up earlier this year to focus on artificial intelligence (AI) projects, is negotiating the size of its investment in OpenAI, the sources said. If finalised, the deal would strengthen the UAE’s ties with one of the world’s leading AI companies and advance the country’s ambition to be at the forefront of the AI revolution.

OpenAI is reportedly seeking to raise up to $6.5 billion in a funding round that could value the company at $150 billion. That figure would nearly double its valuation from $86 billion last year, reflecting growing investor confidence in the future of generative AI and OpenAI’s dominance in the industry.

Venture capital firm Thrive Capital is expected to lead the funding round, committing $1 billion, while previous reports have suggested tech giants like Microsoft, Apple and Nvidia are also in talks to join. The Wall Street Journal and Bloomberg reported on OpenAI’s efforts to raise new funding and the potential increase in its valuation.

OpenAI CEO Sam Altman also discussed changes that could be made to the company’s corporate structure to attract more investors. Currently, OpenAI operates as a nonprofit subsidiary that provides investors with a limited share of profits. Altman noted that the parent organization could lift the profit cap while maintaining its nonprofit status.

While OpenAI is not yet profitable, the company is growing rapidly. Altman revealed that OpenAI’s annual recurring revenues recently reached nearly $4 billion, demonstrating strong financial momentum as it continues to expand its AI offerings.

*This is not investment advice.