Newly formed Abu Dhabi investment firm MGX is in talks to fund Sam Altman's ambitious plan to build excess semiconductor manufacturing capacity for AI processors, the Financial Times has reported. If the negotiations are successful, the move would be in line with the UAE's strategy to become a major player in the global artificial intelligence industry.
OpenAI is driving its own semiconductor development because it needs to reduce its reliance on Nvidia's AI GPUs, such as the H100. Meanwhile, Sam Altman, in addition to developing AI processors, wants to ensure a steady supply to OpenAI and potentially other companies. After witnessing two major semiconductor supply crises in recent years (first in the automotive and PC industries, and then in the AI ​​industry), traditional chip contract manufacturers do not have enough manufacturing capacity to meet the global demand for AI chips. They seem to think that there is no such thing. . As a result, he is said to want to build more factories.
OpenAI CEO Sam Altman reportedly estimates that the cost of building new semiconductor manufacturing facilities and supporting infrastructure could reach up to $7 trillion. . It's not yet clear whether this chip venture is an OpenAI project or Sam Altman's project (more likely the latter), but the CEO has traveled the world talking to chipmakers and is in talks with Singapore's Temasek. It is seeking support from the state, including the Traditional venture capitalists are unlikely to invest such huge sums.
MGX, an AI-focused fund launched by the UAE, is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, presidential advisor for national security affairs. The fund aims to leverage state financial resources and political support to make Abu Dhabi a hub for AI development. The UAE's ambitions to become a global AI powerhouse are also underscored by its efforts to attract key players in the AI ​​industry, including Elon Musk, who has expressed interest in partnering with the Gulf state on his AI venture xAI. It's obvious.
Sheikh Tahnoun's role goes beyond simply chairing MGX. He also heads G42, the UAE's AI-focused company backed by Abu Dhabi's sovereign wealth fund Mubadala. G42 has established partnerships with leading companies in the AI ​​industry such as OpenAI, Microsoft, and Cerebras. His establishment of MGX in collaboration with G42 and Mubadala is another of his AI-related strategic moves from Abu Dhabi.
The UAE's proactive approach to AI is highlighted by its early adoption of AI initiatives, including appointing the world's first AI Minister in 2017 and opening an AI-focused graduate university in 2019. Masu. These initiatives demonstrate the country's dedication to advancing its position in AI. industry.
However, the UAE's AI ambitions come in a complex geopolitical context, with trade tensions between the United States and China extending beyond trade to national security. G42 has been forced to reevaluate its partnerships with Chinese companies, including Huawei, in response to US concerns