Discussions with UAE’s MGX Fund
OpenAI’s intentions to produce its semiconductor chips for powering high-level artificial intelligence (AI) models may be getting funding out of Abu Dhabi, a report from the Financial Times reveals.
The report, published on March 15, says that the United Arab Emirates state-backed group MGX is in discussions to back OpenAI’s venture to build AI chips in-house, according to two people with “knowledge of the discussions.”
Seeking Trillions for Chip Development
To achieve its goals of creating semiconductor chips in-house, OpenAI is reportedly seeking trillions of dollars in investments from investors around the world. By making its chips, the San Francisco-based company hopes to reduce its reliance on Nvidia, the current global leader in semiconductor chip technology.
As a part of its funding efforts, OpenAI made a deal with Thrive Capital to sell shares in the company in February 2023, which reportedly increased the valuation of the company to more than $80 billion. This marked almost a threefold increase in under 10 months.
MGX: UAE’s AI-Focused Fund
MGX, the group behind the potential UAE investment, is an AI-focused fund started earlier this week and headed by the national security adviser of the UAE Sheikh Tahnoon Bin Zayed al-Nahyan. The fund was also created in collaboration with G42 and Mubadala, the former having already entered into a partnership with OpenAI in October 2023 as a part of the company’s Middle East expansion.
UAE’s Ambitions in Emerging Technologies
This comes as the UAE continues to position itself as a global leader in emerging technologies, with Dubai already known as a hub for emerging technologies like cryptocurrencies and the metaverse. One of the sources briefed on the fund echoed that sentiment, saying with the new fund, “they’re looking at creating a structure that will put Abu Dhabi at the centre of this AI strategy with global partners around the world.”
Free Zone for Digital Assets and AI
Last year, the UAE launched a free zone dedicated to supporting companies involved in digital and virtual assets, blockchain, Web3 and AI in Ras Al Khaimah.
OpenAI CEO Sam Altman said during the G42 partnership deal that they plan to bring AI solutions to the Middle East that “resonate with the nuances of the region.”
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