Source Credit: AGBI
OpenAI CEO Sam Altman is set to visit Abu Dhabi this week to secure fresh funding from UAE-based tech investment firm MGX, according to a Reuters report citing two sources.
Altman aims to raise $40 billion to enhance OpenAI’s ChatGPT model and support Stargate, an AI infrastructure initiative, as competition from China intensifies.
MGX: A Key Partner in OpenAI’s Growth Strategy
MGX, launched in March 2024, is an AI-focused investment fund backed by Mubadala and AI company G42. It specializes in AI infrastructure, semiconductors, and AI core technologies.
- In October 2024, MGX was part of a $6.6 billion funding round for OpenAI, which valued the company at $157 billion.
- MGX has also been involved in a $30 billion initiative to develop AI-focused data centers and energy infrastructure.
Altman’s visit to the UAE is part of a broader Asia fundraising tour, following OpenAI’s recent AI services partnership with Japan’s SoftBank.
Stargate: The $500 Billion AI Infrastructure Project
Altman’s funding efforts align with Stargate, an AI infrastructure initiative backed by OpenAI, SoftBank, Oracle, and MGX.
- Announced last month by U.S. President Donald Trump, Stargate aims to spend $100 billion on AI infrastructure initially, scaling up to $500 billion over four years.
- The project seeks to dominate AI computing and counter growing Chinese advancements in AI technology.
Why the UAE is Critical to OpenAI’s Future
The UAE has positioned itself as a global AI investment hub, making it a key partner in OpenAI’s expansion.
- MGX’s deep pockets and government backing make it a strong contender for OpenAI’s next major funding round.
- The UAE’s focus on AI-driven infrastructure and semiconductor development aligns with OpenAI’s long-term goals.
Altman’s high-profile fundraising efforts indicate a global race to secure AI dominance, with the UAE playing a crucial role in shaping the future of AI technology.
