OpenAI semiconductor chip plans lure UAE investors: report

According to a Financial Times report, OpenAI may be getting funding from Abu Dhabi to use high-end artificial intelligence (AI) models to produce its own semiconductor chips.

The report, published on March 15, said that UAE government-backed group MGX is in talks to support its efforts to build OpenAI chips in-house, according to two people “familiar with the discussions”.

To achieve its goals of inventing semiconductor chips in-house, OpenAI is reportedly seeking trillions of dollars in investment from investors around the world.

The San Francisco company hopes to reduce its dependence on Nvidia, which is currently the world leader in semiconductor chip technology, by making its own chips.

As part of its funding effort, OpenII has entered into an agreement with Thrive Capital to sell shares in the company in February 2023, reportedly valuing the company at more than $80 billion. This has almost tripled in less than 10 months.

The group behind Potential UAE Investments, MGX, is an AI-focused fund launched earlier this week and chaired by Sheikh Tahnun bin Zayed Al-Nahyan, the UAE's National Security Adviser.

The fund was created in partnership with G42 and Mubadala, the former forming a partnership with OpenAI in October 2023 as part of the company's Middle East expansion.

Related: OpenAI is reportedly working on its next big product: ChatGPT, which can use tools

Sam Altman, CEO of OpenAI, said during the G42 partnership agreement that they plan to bring AI solutions to the Middle East that “fit the regional differences.”

This comes as the UAE continues to position itself as a global leader in emerging technologies, with Dubai becoming known as a hub for emerging technologies such as cryptocurrencies and the Metaverse.

One of the sources briefed on the fund echoed that sentiment, saying that with the new fund, “they're looking to create a structure that puts Abu Dhabi at the center of this AI strategy with international partners around the world.”

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.

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