OpenAI in Talks with Abu Dhabi’s MGX for AI Chip Investment

State-backed investment firm MGX from Abu Dhabi is in discussions with OpenAI representatives regarding potential funding for an AI chip production project. This was reported by the Financial Times (FT), citing sources.

According to the publication, the industry-focused fund was launched in mid-March and is managed by UAE’s national security advisor, Sheikh Tahnoon bin Zayed Al Nahyan. Authorities aim to establish Abu Dhabi as a hub for AI development, one source clarified.

In February, media reported that OpenAI CEO Sam Altman began talks with investors to raise between $5 trillion and $7 trillion for the chip production project. Sources indicate this is intended to address the shortage of expensive processors faced by the company.

In comments to FT, UAE’s Minister for Artificial Intelligence, Omar Bin Sultan Al Olama, noted that Elon Musk is also interested in partnering with the country.

“I really see him [Musk] doing something here [related to artificial intelligence],” the official noted.

He stated that the UAE needs to increase its momentum towards AI, hence there will be a “constant influx of investment” in this area.

Earlier, the publication learned about OpenAI’s negotiations with Singapore’s Temasek Holdings, which also reportedly involved funding discussions.

The first reports of Altman’s company plans to launch its own AI chip production emerged in October 2023.

Prior to this, it became known that Microsoft was working in this direction. Journalists reported that the corporation plans to avoid dependence on Nvidia.

In February, Bloomberg sources reported on OpenAI selling its shares in a tender offer to Thrive Capital valued at $86 billion.