The Financial Times reported on March 15 that OpenAI is considering the production of its own semiconductor chips to power advanced AI models, potentially with financial backing from Abu Dhabi. According to sources familiar with the matter, discussions are underway between OpenAI and the UAE state-backed MGX Group to support the endeavor.
In its pursuit of building artificial intelligence chips in-house, OpenAI is reportedly seeking trillions of dollars in investment from various global sources. This initiative aims to reduce the company's reliance on Nvidia, a leading player in semiconductor chip technology worldwide.
To bolster its financing efforts, OpenAI entered into an agreement with Thrive Capital in February 2023, allowing the sale of company shares. This transaction significantly raised OpenAI's valuation to over $80 billion, marking a nearly threefold increase in just 10 months. MGX Group, the entity considering investment from the UAE, is an artificial intelligence-focused fund led by Sheikh Tahnoon Bin Zayed al-Nahyan, the UAE’s national security adviser.
The establishment of the fund, in collaboration with G42 and Mubadala, signifies the UAE's commitment to emerging technologies. G42, a partner of OpenAI since October 2023, has been involved in the company's expansion efforts in the Middle East. OpenAI CEO Sam Altman emphasized the intention to bring AI solutions tailored to the specific needs of the region through partnerships like the one with G42.
The UAE's ambition to become a global leader in emerging technologies is evident, with Dubai emerging as a prominent hub for sectors such as cryptocurrencies and virtual universes. The establishment of a free zone in Ras Al Khaimah dedicated to supporting companies in digital assets, blockchain, Web3, and artificial intelligence further underscores the nation's commitment to fostering innovation in these fields.
