In-Short
- OpenAI may receive funding from UAE’s MGX for in-house AI chip development.
- OpenAI seeks trillions in investment to reduce reliance on Nvidia.
- UK semiconductor sector gets EU funding boost through Chips Joint Undertaking.
- MGX, G42, and Mubadala collaborate to support OpenAI’s Middle East expansion.
Summary of OpenAI’s Chip Development Plans and Funding
OpenAI, known for its advancements in artificial intelligence, is reportedly in talks with MGX, a state-backed group from Abu Dhabi, to receive support for its initiative to create semiconductor chips in-house. This move is part of OpenAI’s broader strategy to secure investments worth trillions of dollars globally, aiming to lessen its dependence on Nvidia, the leading provider of semiconductor chip technology.
In February 2023, OpenAI’s valuation soared to over $80 billion following a deal with Thrive Capital, a significant increase from just 10 months prior. Concurrently, the UK’s semiconductor industry is set to benefit from the EU’s Chips Joint Undertaking, which offers access to a €1.3 billion research fund. The UK government has pledged an initial £5 million for 2023, with an additional £30 million earmarked for 2025-2027.
MGX, which is considering the investment in OpenAI, was recently launched and is led by Sheikh Tahnoon Bin Zayed al-Nahyan, the UAE’s national security adviser. The fund is a collaboration with G42 and Mubadala, and G42 has already partnered with OpenAI for its expansion in the Middle East.
As the global competition in semiconductor technology heats up, both the UAE and the UK-EU are making strategic moves to become influential players in the sector.
Further Information and Credits
For more detailed insights into OpenAI’s plans for in-house chip development and the international semiconductor landscape, please refer to the original source article.
Image credit: Wael Hneini on Unsplash
