Abu Dhabi’s MGX eyes investment in OpenAI chip venture — FT

Abu Dhabi’s newest technology investment firm, MGX, might only be a few days old but it’s already in talks to potentially invest in an OpenAI chip venture, according to a report by the Financial Times on Friday.

READ MORE: Abu Dhabi pushes deeper into AI with new investment firm

The report highlights how OpenAI is looking to raise “hundreds of billions of dollars to as high as $7tn over the coming years” to start building out computer chips that can power its AI models and algorithms.

It’s not the first time that murmurs have existed around the UAE’s involvement in such an investment. The Wall Street Journal reported earlier this year that OpenAI CEO , Sam Altman, was looking to UAE investors to help back this initiative.

The discussions between MGX and OpenAI are at an early stage, according to the Financial Times. Meanwhile, Singapore’s Temasek Holdings is said to also be in talks to invest in OpenAI’s chip ambitions.

The move by OpenAI to start manufacturing its own chips comes as global tech giant Nvidia continues to dominate the AI chipmaking space. Over the last year, Nvidia’s share price has soared more than 262 per cent amid the company controlling up to 80 per cent of the global AI chip market. 

Sam Altman, the CEO of OpenAI has previously raised concerns about a lack of AI chips in the market.

READ MORE: OpenAI’s Altman reveals deepest AI fears, hopes to UAE audience

MGX’s AI ambitions

News of the potential involvement of MGX in an investment round in OpenAI’s chip ambitions has emerged just days after Abu Dhabi’s artificial intelligence council launched the investment firm on March 11.

As part of its core mandate, MGX has been established to “accelerate the development and adoption of AI and advanced technologies through partnerships both in the UAE and globally”, Gulf Business reported earlier this week.

In a statement, it was revealed that the firm’s investment strategy will focus on three main verticals: AI infrastructure, semiconductors and AI core technologies and applications.

MGX is further expected to surpass $100bn in assets under management. It counts Abu Dhabi wealth fund, Mubadala Investment Company, and Group 42 as founding partners.

Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and Chair of the Artificial Intelligence and Advanced Technology Council (AIATC), is also the new chair of MGX.