Abu Dhabi’s MGX in talks to invest in OpenAI’s chip venture

The Financial Times (FT) reported on 15 March, that Abu Dhabi’s state-backed investment firm MGX is in negotiations to invest in OpenAI’s chip project.

AI Brain: Digital graphic design showcasing AI technology.

MGX, a new technology investment firm supported by Abu Dhabi’s authorities, is in early-stage talks about investing in OpenAI’s chip venture. MGX, founded by Abu Dhabi’s Mubadala and AI startup G42, was only formed this week, according to the UAE’s Artificial Intelligence and Advanced Technology Council announcement.

Why does it matter?

This potential investment demonstrates Abu Dhabi’s interest in supporting OpenAI’s ambitious semiconductor project, aligning with the UAE’s efforts to promote AI innovation and leading-edge technologies. Omar Sultan Al Olama, UAE’s AI minister, also told the FT that he expects xAI owner Elon Musk to get involved in anything AI-related in his country.

Unveiling OpenAI’s ChatGPT in November 2022 brought the focus to generative AI, resulting in billions of dollars invested in servers and advanced chips used in the design, training, and deployment of these models. In 2023, AI startups received one out of every three dollars invested in the US, with ChatGPT taking the headlines and tech startups racing to develop AI technologies.