UAE to Contribute Financially in the Development of OpenAI’s In-house Chips
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OpenAI’s ambitious plans to develop its own semiconductor chips for powering advanced AI models could receive a boost from the United Arab Emirates (UAE), according to a report by the Financial Times.
The report states that MGX — a state-backed group in Abu Dhabi — is in discussions to support OpenAI’s venture to build AI chips in-house. This information comes from two individuals with knowledge of the discussions.
In order to achieve its goal of creating semiconductor chips internally, OpenAI is reportedly seeking investments worth trillions of dollars from investors worldwide. By manufacturing its own chips, the San Francisco-based company aims to reduce its reliance on Nvidia, the current global leader in semiconductor chip technology.
OpenAI entered into a partnership with Thrive Capital in February 2023 as part of its fundraising endeavours. This arrangement purportedly soared the company’s worth to beyond $80 billion, symbolizing a near tripling in value in under 10 months.
Meanwhile, the semiconductor industry in the UK is experiencing an increase in access to funds for research as a result of the nation’s involvement in the EU’s ‘Chips Joint Undertaking’.
The UK’s participation in the Chips Joint Undertaking has improved the availability of the €1.3 billion allocated by Horizon Europe in support of semiconductor technology research until 2027 to the British semiconductor industry. Backed by a £5 million initial contribution from the UK government this year, an additional £30 million is slated to bolster UK involvement in more research from 2025 to 2027.
The Technology Minister, Saqib Bhatti, commented, “Britain’s strengths in semiconductor research and science will be bolstered through our membership in the Chips Joint Undertaking, securing our place in the worldwide chip supply chain. This reinforces our unshaken dedication to pushing technological limits and confirms our vital role in forming the future of semiconductor technologies globally.”
MGX, a company in the UAE with intentions of investing in OpenAI, is an AI-centric fund that launched recently under the supervision of Sheikh Tahnoon Bin Zayed al-Nahyan, UAE’s national security adviser. The fund was formed in alliance with Mubadala and G42. Notably, G42 has previously collaborated with OpenAI in October 2023 as part of its expansion plan in the Middle East.
The partnership deal with G42 saw Sam Altman, OpenAI’s CEO, assure the planning of introducing AI solutions specifically designed for the Middle East, keeping in sync with the region’s distinctive features.
Underlining the aims of the MGX fund, a source explained, “Their objective is to form a structure that places Abu Dhabi as a central figure in their AI strategy with global partners internationally.”
The contest to create ground-breaking semiconductor technologies is heating up, with both the UAE and the UK-EU emerging as significant participants.
(Photo by Wael Hneini on Unsplash)
See also: EU approves controversial AI Act to mixed reactions
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Tags: ai, artificial intelligence, chips joint undertaking, eu, europe, hardware, horizon europe, mgx, openai, semiconductor, uae, uk, united arab emirates
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