Informed sources have disclosed that MGX, a prominent investment fund backed by Abu Dhabi, is currently engaging in preliminary discussions to invest in OpenAI’s efforts to develop its own chip technology.
This initiative is part of the United Arab Emirates’ (UAE) broader strategy to establish itself as a key player in the global artificial intelligence (AI) sector.
The Financial Times has reported that these early conversations between MGX, a sovereign wealth fund with the backing of Abu Dhabi, and OpenAI aim at potentially funding the AI organization’s ambitious chip production plans.
Since the funding talks are still in their early phases, finer details such as the scope and specifics of the funding remain undisclosed at this point. This funding deal not only represents OpenAI’s ambition but also Abu Dhabi’s goal to carve out a significant role for itself in the worldwide competition for supremacy in AI tech.
These endeavors were further highlighted by the brother of the UAE’s President, Sheikh Tahnoon bin Zayed al-Nahyan, who said that the newly set up MGX Fund has a mission to nurture a ‘national champion’ in Abu Dhabi for AI investments. Sheikh Tahnoon, who is responsible for the AI firm G42, has successfully established alliances with notable tech giants including OpenAI, Microsoft, and Cerebras.
One of G42’s partners, Cerebras, has recently announced its very own AI chip called CS-3, which is meant to train models 10 times bigger than GPT 4, according to the company’s claims. The first supercomputer to be outfitted with this advanced CS-3 chip is owned by G42.
On the other hand, OpenAI’s chip ambitions are spearheaded by company CEO Sam Altman, who has plans to reduce reliance on chip giants such as Nvidia by producing its own hardware. According to Altman, these chip plans looking to build a global infrastructure could cost up to a whopping $7 trillion in the upcoming years.
He advocates for a coalition involving OpenAI, financial backers, semiconductor producers, and energy companies to build an international array of chip manufacturing plants. He had reportedly been in talks with Samsung Electronics as well for the same plans.
