OpenAI surges to $500 billion valuation in share sale backed by Abu Dhabi

OpenAI has vaulted past Elon Musk’s SpaceX to become the world’s biggest startup after a share sale to investors including Abu Dhabi firm MGX valued the artificial intelligence giant at $500 billion.

Mubadala and G42-backed MGX, Thrive Capital, SoftBank Group, Dragoneer Investment Group and T. Rowe Price were among the named parties who bought $6.6 billion worth of stock from current and former employees.

The sale fell short of the $10 billion-plus limit on stock the company allowed for sale, potentially indicating the confidence of staff in the long-term trajectory of the business, Bloomberg reports.

It was the third major investment in OpenAI by MGX, which took part in a fundraising round earlier this year that valued the company at $300 billion, after making an initial investment in 2024.

OpenAI and CEO Sam Altman have a tight relationship with the UAE, where the company agreed earlier this year to partner with AI powerhouse G42, Oracle and Nvidia to build a 1-gigawatt computing cluster called Stargate UAE.

Altman met with UAE President Sheikh Mohamed bin Zayed and Sheikh Tahnoon bin Zayed, the National Security Adviser who oversees some $1.5 trillion in UAE assets, in Abu Dhabi on the weekend. He was awarded an honorary doctorate from the Mohamed bin Zayed University of Artificial Intelligence at a ceremony on Friday.

Saudi Arabia’s Sabic considers IPO for its industrial gas unit

Saudi Arabia’s state-owned chemical maker Sabic is considering selling shares of its industrial gas unit as part of a rigorous review of its operations after a string of quarterly losses.

An IPO for National Industrial Gasses Co. on Riyadh’s Tadawul stock exchange is among the “strategic options” being evaluated, Sabic said today in a statement, confirming earlier reports that a share sale was being discussed.

Sabic, a maker of petrochemicals and fertilizers that is 70% owned by Saudi Aramco, has posted losses in its past two quarters, prompting discussions about restructuring the company to focus on its core businesses. Sabic shares are down 16% this year.

Preliminary consultations with investment banks about selling shares of the gas unit – in which Sabic owes a 74% stake – included talks with Lazard, HSBC, JPMorgan Chase and Morgan Stanley, Bloomberg reported in May.

Sabic, short for Saudi Basic Industries Corp., said in today’s statement that it will offer details on its restructuring in the third quarter and aims to complete the plan by the end of this year.

PIF-backed Acwa Power eyes share sale

Saudi Arabia’s energy firm Acwa Power is planning to raise 7.1 billion riyals ($1.9 billion) by issuing stock to existing shareholders days after Saudi Aramco landed $11.2 billion in its own share sale.

Acwa Power, which is 44% owned by the Saudi Public Investment Fund, is one of the leading firms in Saudi Arabia’s decarbonization and diversification strategies.

The company is planning to double annual investments to $2.5 billion in an international push into renewables and hydrogen, as well as projects in the kingdom, Bloomberg reports.

Acwa’s shares have increased about 570% since listing on the Saudi Tadawul Exchange in October 2021. 

Saudi Aramco prepares for $10 billion share sale amid oil cuts

Saudi Aramco, the world’s largest oil company, is generating renewed energy among investors as it moves forward with a secondary offering.

The share sale is currently being planned to start on Sunday with the booking process to take orders and could raise more than $10 billion, making it the largest offering of its kind in years, Bloomberg reports.

No final decisions have been made on the offering period and terms of the deal, including its size, could still change, according to the news agency.

Aramco didn’t immediately respond to requests for comment.

The offering is set to come days after Aramco’s stock dropped to the lowest level in over a year.

The deal’s opening will coincide with next week’s OPEC+ meeting to discuss oil output policy, where the group is expected to maintain supply curbs.

Saudi Arabia’s production is close to its lowest level in three years.