OpenAI’s ambition to develop its own semiconductor chips for advanced AI models may receive backing from Abu Dhabi’s state-backed group MGX, according to a report from the Financial Times on March 15. Sources familiar with the matter revealed that discussions are underway for MGX to support OpenAI’s endeavor to manufacture AI chips in-house, with the company seeking significant investments globally to realize this vision.
The San Francisco-based OpenAI aims to lessen its dependency on Nvidia, a leader in semiconductor chip technology worldwide, by venturing into chip development independently. By producing its own chips, OpenAI seeks to enhance its autonomy and capabilities in powering high-level AI models.
OpenAI’s pursuit of funding has been vigorous, with a recent deal struck with Thrive Capital in February 2023. This agreement reportedly propelled OpenAI‘s valuation to over $80 billion, marking a substantial increase within a short timeframe.
MGX, the potential investor from the UAE, is an AI-focused fund spearheaded by Sheikh Tahnoon Bin Zayed al-Nahyan, the national security adviser of the UAE. Established in collaboration with G42 and Mubadala, MGX represents a strategic move by Abu Dhabi to play a pivotal role in the global AI landscape.
The UAE has been actively positioning itself as a frontrunner in emerging technologies, with Dubai serving as a hub for innovations like cryptocurrencies and the metaverse. The establishment of a free zone in Ras Al Khaimah dedicated to supporting companies involved in digital assets, blockchain, Web3, and AI underscores the nation’s commitment to fostering technological innovation and entrepreneurship.
With the potential backing from MGX, OpenAI’s semiconductor chip venture could receive a significant boost, positioning Abu Dhabi at the forefront of AI innovation on a global scale. By leveraging strategic partnerships and investments, the UAE aims to establish itself as a central hub for AI advancements, aligning with its broader vision for technological leadership in the digital era.
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