Open AI semiconductor chip plans entice UAE investors

Potential funding for Open AI’s computer chip project could come from the United Arab Emirates, indicating a growing interest in AI initiatives in the region. These chips would used by OpenAI to assist with complex AI activities. It appears that Abu Dhabi could supply the financing for this project.

According to a Financial Times story dated 15th of March MGX organization discussed endorsing OpenAI’s endeavor to develop artificial intelligence chips. Two people who are familiar with the discussions provided this information.

According to reports, OpenAI is looking for contributions totaling billions of dollars from investors worldwide to fulfill its ambitions of developing semiconductor chips internally.

The San Francisco-based company wants to lessen its dependency on Nvidia, the market leader in semiconductor chip technology at the moment, by producing its processors.

In February 2023, OpenAI reached an agreement with Thrive Capital to sell firm shares as part of its funding efforts, reportedly raising the business’s valuation to over $80 billion. In less than ten months, this amounted to nearly a threefold rise.

UAE’s Strategic Investments in Emerging AI Technologies

The organization behind the possible UAE investment, MGX, is an AI-focused fund that established earlier this week and is led by Sheikh Tahnoon Bin Zayed al-Nahyan, the UAE’s national security adviser.

Additionally, the fund established in cooperation with G42 and Mubadala, the latter of which had already partnered with OpenAI in October 2023 as part of the business’s Middle East development.

During the G42 partnership agreement, Open AI CEO Sam Altman stated that the company aims to introduce AI solutions that “resonate with the nuances of the region” to the Middle East.

While Dubai continues to establish the United Arab Emirates as a global leader in emerging technology, recognized as a hub for cutting-edge innovations like cryptocurrencies and the metaverse.

The new fund “will put Abu Dhabi at the center of this AI strategy with global partners around the world,” according to one of the persons briefed on the fund, echoing that stance.

In Ras Al Khaimah, the UAE established a free zone last year to assist businesses engaged in blockchain, Web3, digital and virtual assets, and artificial intelligence.