In a bid to bolster its prowess in AI technology, OpenAI could receive a significant financial boost from the United Arab Emirates (UAE), reports the Financial Times.
Sources familiar with the matter reveal that MGX, a state-backed entity based in Abu Dhabi, is currently in talks to back OpenAI’s initiative to fabricate its own AI chips. This move aligns with OpenAI’s strategy to lessen dependence on industry giant Nvidia and pave the way for internal chip manufacturing.
To materialize its vision of internal chip production, OpenAI is reportedly eyeing investments worth trillions of dollars from global investors. This quest for funding gained traction when OpenAI secured a deal with Thrive Capital in February 2023, catapulting the company’s valuation to over $80 billion within a mere 10 months.
Meanwhile, in the UK, the semiconductor sector is poised for significant research funding, thanks to its involvement in the EU’s ‘Chips Joint Undertaking’. This initiative, backed by an initial £5 million from the UK government, aims to fortify Britain’s position in the global semiconductor supply chain.
According to Technology Minister Saqib Bhatti, the UK’s participation underscores its commitment to semiconductor innovation and global technological advancement.
In the UAE, MGX, spearheading the potential investment in OpenAI, is an AI-focused fund led by Sheikh Tahnoon Bin Zayed al-Nahyan, the UAE’s national security adviser. The fund, formed in collaboration with G42 and Mubadala, follows G42’s previous partnership with OpenAI in October 2023, signifying OpenAI’s expansion into the Middle East.
During the G42 partnership announcement, OpenAI CEO Sam Altman emphasized their intent to tailor AI solutions to the region’s specific needs.
Sources briefed on MGX’s plans highlight Abu Dhabi’s ambition to become a global hub for AI strategy, fostering partnerships worldwide.
The potential backing from UAE’s MGX marks a significant stride for OpenAI’s semiconductor aspirations, potentially reshaping the landscape of AI technology.”