1. OpenAI plans to develop its own semiconductor chips with potential investment from UAE’s state-backed group MGX.
2. OpenAI seeks trillions of dollars in investments to reduce reliance on Nvidia for semiconductor chip technology.
3. UK’s participation in the EU’s Chips Joint Undertaking provides enhanced funding for research in semiconductor technologies, boosting Britain’s strengths in the global chip supply chain.
OpenAI is reportedly seeking investments worth trillions of dollars to develop its own semiconductor chips for AI models, and the UAE’s state-backed group MGX may support this venture. By manufacturing its own chips, OpenAI aims to reduce reliance on Nvidia. The UK’s participation in the EU’s Chips Joint Undertaking provides research funding for semiconductor technologies, backed by £5 million from the UK government this year.
OpenAI’s valuation increased to over $80 billion after a deal with Thrive Capital in February 2023. In the UAE, MGX, an AI-focused fund led by Sheikh Tahnoon Bin Zayed al-Nahyan, is considering an investment in OpenAI. The fund was established in collaboration with G42 and Mubadala, with G42 already partnering with OpenAI in the Middle East.
The UK government’s commitment to semiconductor research reinforces Britain’s role in the global chip supply chain. Technology Minister Saqib Bhatti emphasized the importance of semiconductor science and research to secure the country’s position in the industry. OpenAI’s CEO Sam Altman plans to bring AI solutions tailored for the Middle East, emphasizing the region’s unique requirements.
Both the UAE and the UK-EU are positioning themselves as key players in the race to develop advanced semiconductor technologies. The potential investment from MGX may put Abu Dhabi at the center of this AI strategy. Overall, OpenAI’s efforts to develop its own semiconductor chips and the UK’s participation in semiconductor research initiatives signal a growing focus on advancing AI technology globally.