Abu Dhabi’s MGX fund in early talks to fund OpenAI’s chip ambitions



Two insiders reveal that Abu Dhabi’s state-backed investment fund, MGX, is in early talks to fund OpenAI’s chip plans as the UAE aims to become a global AI hub.

The Abu Dhabi-backed sovereign wealth fund MGX is in early-stage talks to potentially finance OpenAI’s ambitious plans to establish its own chip manufacturing, according to two sources familiar with the discussions, as reported by the Financial Times.

While the scope and specifics of the potential funding from MGX remain undisclosed, the talks are said to be in their initial phases. The discussions underscore Abu Dhabi’s determination to position itself as a major player in the global race for AI dominance.

Sheikh Tahnoon bin Zayed al-Nahyan, a brother of the UAE President, has stated that the newly established MGX fund aims to create a “national champion” for AI investments in Abu Dhabi. Sheikh Tahnoon also oversees the AI company G42, which has already forged partnerships with OpenAI, Microsoft, and Cerebras.



Notably, Cerebras recently unveiled its next-generation AI chip, the “CS-3,” designed to train models ten times larger than GPT-4. G42 owns the first supercomputer equipped with the CS-3 chip.

OpenAI’s quest for chip independence

OpenAI CEO Sam Altman is spearheading the push for a new AI chip manufacturing infrastructure to gain greater control over key components for AI applications and reduce reliance on Nvidia. Altman estimates that building a global AI infrastructure could cost as much as $7 trillion in the coming years.

He is proposing a partnership between OpenAI, investors, chip manufacturers, and energy providers to establish a global network of chip factories.

To finance these massive investments, OpenAI is seeking partnerships with well-funded sovereign wealth funds. Apart from Abu Dhabi’s MGX, the company is also in discussions with Singapore’s Temasek, as reported by the Financial Times.

Beyond talks with major investors, Altman has already engaged in discussions with manufacturing giants such as Samsung, SK Group, and TSMC about potential collaboration.


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