UAE Supports AI Chip Enterprise Backed by OpenAI

Abu Dhabi's newly established AI-focused investment firm, MGX, is in talks with OpenAI's chip company for investment. This development comes a month after OpenAI CEO Sam Altman announced a goal of raising $7 trillion for AI chip companies, aiming to reduce dependence on current global semiconductor giants.

MGX, a UAE-based company funded by the UAE government and led by UAE National Security Advisor Sheikh Tahnoon bin Zayed-al-Nahyan, aims to enhance the UAE's market position in the field of AI and compete with Western tech giants. Sheikh Tahnoon also serves as the Chairman of UAE AI holding company G42.

Collaboration between Big Tech and the UAE

The interest between Abu Dhabi and OpenAI has been ongoing for several months. Last year, OpenAI partnered with G42, which will utilize OpenAI's generative AI models to support the UAE's energy, healthcare, and other industrial sectors. On the other hand, OpenAI will expand its business scope in the UAE and benefit from G42's Arabic language model.

According to reports, tech giant Elon Musk is also seeking to establish strategic partnerships with the UAE. Musk's ambition to expand in the AI market is not new, considering his continuous competition with OpenAI to gain a leading position. Additionally, his AI company, xAI, needs a larger market, and the UAE may be an ideal choice.

Altman's dream of raising trillions of dollars involves long-term planning to disrupt the AI chip market currently dominated by Intel and TSMC. Meanwhile, there is high anticipation for OpenAI's GPT-5, as a year has passed since the release of GPT-4.