The report reveals discussions between Abu Dhabi’s state-backed MGX group and OpenAI regarding support for the latter’s venture to develop AI chips in-house. This information is sourced from individuals familiar with the talks.
In its pursuit of manufacturing semiconductor chips internally, OpenAI is reportedly seeking investments worth trillions of dollars from global investors. By developing its chips, the San Francisco-based company aims to decrease its dependence on Nvidia, the current leader in semiconductor chip technology worldwide.
OpenAI Valuation Soars After Dealing with Thrive Capital
As part of its funding endeavors, OpenAI struck a deal with Thrive Capital in February 2023. This deal significantly boosted the company’s valuation to over $80 billion, marking an almost threefold increase in less than 10 months.
The UK semiconductor sector now enjoys enhanced access to research funding through its participation in the EU’s ‘Chips Joint Undertaking’. This initiative allocates a €1.3 billion fund from Horizon Europe to support research in semiconductor technologies until 2027. The UK government has pledged an initial £5 million this year, with an additional £30 million to support further research participation between 2025 and 2027.
According to Technology Minister Saqib Bhatti, the UK’s membership in the Chips Joint Undertaking will bolster the nation’s prowess in semiconductor science and research. He emphasizes the country’s commitment to pushing technological boundaries and shaping the future of semiconductor technologies globally.
MGX Fund: UAE’s Strategic Move in AI
MGX, a newly established AI-focused fund in the UAE, is considering a potential investment in OpenAI. Led by Sheikh Tahnoon Bin Zayed al-Nahyan, the UAE’s national security adviser, the fund was launched in collaboration with G42 and Mubadala. G42 previously partnered with OpenAI in October 2023 as part of the company’s expansion into the Middle East.
During the partnership deal with G42, OpenAI CEO Sam Altman expressed his intention to introduce AI solutions to the Middle East tailored to the region’s unique characteristics.
Sources familiar with the MGX fund highlight Abu Dhabi’s ambition to establish a structure that positions the emirate at the forefront of the global AI strategy. The goal is to collaborate with partners worldwide, solidifying Abu Dhabi’s role in the advancement of AI technology.
Amidst the escalating competition to develop cutting-edge semiconductor technologies, both the UAE and the UK-EU are strategically positioning themselves as major contenders in this arena.
.See also: Blackwell Architecture by NIVIDIA to Power Upcoming GenAI Wave
