For months now, Sam Altman has been trying to line up investors for his semiconductor venture, one that would provide AI-focussed processors, instead of having to rely on a few select GPU makers, namely NVIDIA. It looks like he may finally have a shot at getting some of the wealthiest people on the planet to invest in his latest venture.
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Abu Dhabi’s newest investment firm, MGX, is in talks to support OpenAI’s ambitious chip venture, marking this the United Arab Emirates’ latest endeavour to wield influence in the global artificial intelligence (AI) landscape.
Backed by the UAE government, MGX is currently engaged in preliminary discussions for a funding arrangement with OpenAI, according to a report by the Financial Times.
OpenAI’s CEO, Sam Altman, is spearheading efforts to establish a semiconductor business, aiming to diminish reliance on advanced chips provided by Nvidia.
AI is going to be extremely resource-heavy, especially when we consider computing hardware. Experts have estimated that the costs associated with building AI infrastructure can vary widely, very quickly. This means that it can range from a few hundred of billion to trillions of dollars over the coming years, surpassing anything that traditional technology venture capitalists have ever handled. This means that Altman has no option but to approach and engage with nation-states.
MGX, chaired by Sheikh Tahnoon bin Zayed al-Nahyan, UAE‘s influential national security adviser, launched as an AI-focused fund with aspirations of positioning Abu Dhabi as a central hub in the global AI landscape. The UAE, leveraging its substantial wealth, abundant energy resources, and political backing, seeks to gain an edge in the race for AI dominance.
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UAE’s AI minister, Omar Sultan Al Olama, revealed that Tesla CEO Elon Musk has expressed interest in collaborating with the Gulf state. Al Olama emphasized the UAE’s focus on creating partnerships aligned with economic interests and fostering AI advancements led by Emiratis or in collaboration with global leaders.
Sheikh Tahnoon, overseeing a vast $1.5 trillion empire, chairs G42, a group of AI-focused companies backed by Abu Dhabi’s sovereign investment fund Mubadala. By establishing MGX alongside G42 and Mubadala, Abu Dhabi aims to bolster its position as an AI leader and attract top technology talent and investment.
The UAE’s proactive stance in AI development has attracted industry leaders like Altman and Nvidia’s Jensen Huang, drawn by the nation’s ambition and financial resources. Despite its ambitious plans, the UAE has navigated challenges, including trade tensions between the US and China. G42, in particular, severed ties with Chinese partners and divested its investments in China, aligning with the UAE’s strategic decision to prioritize collaboration with US tech partners.
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While emphasizing the UAE’s commitment to responsible and non-controversial AI applications, Al Olama reiterated the nation’s openness to working with global partners to drive AI innovation. The UAE’s approach underscores its dedication to leveraging AI for long-term benefits while ensuring alignment with economic objectives and responsible governance principles.
