OpenAI Pursues Global Investment, Including Abu Dhabi Funding, for In-House Semiconductor Production
Summary:
OpenAI, a San Francisco-based AI firm, is reportedly seeking substantial global investment, including funding from Abu Dhabi-based MGX, to manufacture its own semiconductor chips and lessen dependency on Nvidia. This follows a share selling agreement with Thrive Capital, raising the company's valuation to over $80 billion. The UAE, with its focus on advancing in AI and other emerging technologies, could become a significant partner in OpenAI's global strategy.
OpenAI, an organization dedicated to advancing artificial intelligence (AI), is reportedly looking to Abu Dhabi for investment in its pursuit of creating self-designed semiconductor chips. The Financial Times recently published an account stating that negotiations are in progress between OpenAI and UAE state-supported group, MGX. According to anonymous sources with insight into these talks, OpenAI's goal of manufacturing its own AI chips might need trillions in global investment. This endeavor, based in San Francisco, is aimed at lessening its dependence on Nvidia, the reigning king of semiconductor technology.
OpenAI recently upped its financial prospects by entering a share selling agreement with Thrive Capital, targeting February 2023 for the transaction. This move bumped up the organization's value to well over $80 billion, nearly tripling its worth in less than a year. Sheikh Tahnoon Bin Zayed al-Nahyan, UAE's national security advisor, is at the helm of MGX, a newly-formed AI-centric fund. This fund was assembled with assistance from G42 and Mubadala. G42 had previously collaborated with OpenAI as part of its Middle East expansion strategy in October 2023.
OpenAI CEO, Sam Altman, expressed plans during this collaboration to bring tailored AI solutions to the Middle East. The UAE is stepping up as a considerable player in the global technology scene, with Dubai already recognized as a hotbed for emerging technologies such as cryptocurrencies and the metaverse. An anonymous source acknowledged the potential impact of this new fund and its ability to position Abu Dhabi as a key figure in global AI strategy.
Last year, the UAE dedicated a free zone in Ras Al Khaimah to facilitating companies working with digital and virtual assets, blockchain, Web3, and AI.
Also on the news, a detailed investigation into the phenomena of AI response enthusiasts, the chaos caused by the Copilot image, and Trump deepfakes are featured in 'AI Eye'.
Published At
3/15/2024 12:24:28 PM
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